EU Strengthens Ties with Ukraine Amid Tensions with Russia

European leaders gathered in Brussels to support Ukrainian President Zelenskiy. The EU plans a 'reparation loan' using frozen Russian assets to aid Ukraine. With EU sanctions against Russia escalating, debates continue over the loan's military use and conditions. Russia warns against this asset use, hinting at possible retaliations.

European leaders convened in Brussels on Thursday to reaffirm their support for Ukrainian President Volodymyr Zelenskiy. Their meeting followed tense developments, including anticipated talks between Donald Trump and Russia's Vladimir Putin, which were later canceled. At the summit, EU leaders restated their backing for Ukraine's sovereignty, while considering a proposal to leverage frozen Russian assets for a significant loan to Kyiv.

The European Commission's strategy involves a 'reparation loan' using 140 billion euros from Russian central bank assets frozen in Europe. This financial aid aims to cover much of Ukraine's funding needs for 2026 and 2027. However, Belgium's legal and financial concerns over the use of these assets necessitate further consultations among European leaders. The loan conditions are also under negotiation, as some politicians insist it should bolster Ukraine's military capabilities.

Despite challenges, EU diplomats express a strong political will to proceed. Kyiv desires autonomy on how to utilize the funds, proposing a mix of military and budgetary applications. Meanwhile, Russia has termed the plan an illegal property seizure, warning of repercussions. As the EU progresses with its 19th sanctions package against Russia, including a liquefied natural gas ban, the geopolitical climate remains tense.

(With inputs from agencies.)