BRUSSELS — European Union leaders agreed Friday to advance a plan mobilising frozen Russian central bank assets to finance Ukraine, while granting Belgium legal guarantees over the Euroclear depository where most of the funds are held. The European Council confirmed the conclusions after talks ran late into the night.

Most of the roughly €200bn in immobilised Russian assets sit at Euroclear in Brussels, making Belgian consent essential. Prime Minister Bart De Wever had warned that Belgium would not shoulder the legal and financial risk alone, demanding shared liability across member states before agreeing to any 'reparations loan' structure.

The move follows a Russian and Chinese communiqué this week warning that any sovereign asset freeze would 'destabilise the entire world,' and Moscow has threatened retaliation against European firms. European Commission President Ursula von der Leyen pressed leaders to back the mechanism to cover Ukraine's financing needs through 2027.

Kyiv welcomed the political commitment. Ukrainian officials said the funds were critical as Russia intensified strikes on the country's energy grid ahead of winter.

Diplomats cautioned that technical and legal work would continue before cash flows, leaving the precise timing and figures to be finalised by finance ministers. European Council President António Costa described the asset decision as a signal that EU support for Ukraine would not waver, reaffirming continued sanctions pressure on Moscow.