BRUSSELS — European Union leaders agreed on Thursday to channel billions in frozen Russian central bank assets toward Ukraine's defence and reconstruction. The deal aims to cover Kyiv's financing needs through 2027.

The agreement centres on using cash balances held at Belgium's Euroclear depository, where the bulk of some €200bn in immobilised Russian sovereign assets is kept. Belgian Prime Minister Bart De Wever had demanded legal guarantees and shared liability before endorsing any scheme, citing exposure to Russian retaliation and litigation.

Hungarian Prime Minister Viktor Orbán again resisted the broader package, forcing leaders to structure parts of the arrangement outside the requirement for full unanimity. European Commission President Ursula von der Leyen had pressed member states for weeks to approve the so-called reparations loan ahead of winter.

The decision marks the most aggressive European move yet to make Moscow pay for the war, coming as Russian strikes continue to batter Ukraine's power grid. Kremlin spokesman Dmitry Peskov had warned repeatedly that any seizure of assets would draw retaliatory measures and legal challenges.

Ukrainian President Volodymyr Zelensky, who addressed leaders by video, welcomed the outcome as vital for sustaining his country's budget and air defences through the coming months.