EU leaders have agreed to raise a €90bn loan to fund Ukraine for the next two years, but stopped short of adopting a proposal to use tens of billions of euro in frozen Russian assets to underwrite a long-term funding package.

The EU agrees to a $136 billion loan for Ukraine to address budget shortfalls, but without using frozen Russian assets. Read more at straitstimes.com. Read more at straitstimes.com.

EU leaders agree on a €90 billion loan for Ukraine, but reject using frozen Russian assets for funding.

The number one option on the table had been to tap around €200 billion of Russian central bank assets frozen in the EU to generate a loan for Ukraine.

The Belgians fear that the country may be held liable in the future for the use of the seized assets.

President Volodymyr Zelensky said in Brussels, where the leaders had gathered, that without the money, his country would have to reduce its drone production significantly.