EU Advances Ukraine Funding Plan, Adopts Sanctions

EU leaders instructed the European Commission to develop proposals to fund Ukraine for the next two years, including a potential loan backed by frozen Russian central-bank assets estimated at about €140 billion. They formally adopted a new package of sanctions while Kyiv and several member states remain at odds over conditions — Ukraine wants broad budget autonomy while others want most money ring‑fenced for European-made weapons; the Commission has floated a compromise directing the bulk to arms purchases with a smaller share for general budget support. Belgian and other officials warned of legal and market risks tied to immobilized assets, including concerns about Euroclear, and the United States has signaled it will not join an EU‑led effort to repurpose the reserves. EU officials have discussed tapping parts of the EU's €150 billion Security Action for Europe/defense-investment program or related loans to help Kyiv, and Moscow denounced the repurposing proposal as theft, increasing diplomatic friction.