Russian President Vladimir Putin on Friday warned the European Union against using frozen Russian assets to fund Ukraine. He said such a move would have brought “severe” consequences for the bloc.

Speaking at his annual press conference, Putin described the proposal as outright theft. He said carrying it out would amount to a “robbery”.

“But why can’t they carry out this robbery? Because the consequences could be severe for the robbers,” he added.

EU Approves Ukraine Loan, Pauses Asset Plan

Earlier in the day, the European Union agreed to provide a loan worth $106 billion to Ukraine. The funding aims to help Kyiv manage its growing budget gap.

However, EU leaders decided to put the plan to use frozen Russian assets on hold for now. The agreement followed more than a full day of negotiations at a summit in Brussels. It gives Ukraine crucial financial support at a time when US President Donald Trump is pushing for a quick settlement to end the war with Russia.

“We have a deal. Decision to provide 90 billion euros of support to Ukraine for 2026-27 approved,” EU Council President Antonio Costa wrote on X. “We committed, we delivered.”

Why the EU Avoided Using Russian Assets

EU leaders initially wanted to use nearly 200 billion euros in Russian central bank assets frozen within the bloc. The plan was to leverage these funds to generate a loan for Ukraine. However, the proposal collapsed after Belgium opposed it.

Belgium holds most of the frozen Russian assets. The country asked for guarantees that liability would be shared if legal or financial risks emerged. Other EU members found these demands difficult to accept.

German Chancellor Friedrich Merz strongly supported using the assets. Still, he said the final loan decision “sends a clear signal” to Russian President Vladimir Putin.

Ukraine’s Funding Needs Remain High

According to EU estimates, Ukraine needs an additional 135 billion euros ($159 billion) over the next two years to keep its economy functioning. Officials warn that the financial pressure will begin to intensify from April.

Ukrainian President Volodymyr Zelensky urged EU leaders at the start of the summit to move ahead with using Russian assets.

“Russian assets must be used to defend against Russian aggression and rebuild what was destroyed by Russian attacks. It’s moral. It’s fair. It’s legal,” Zelensky said.

Relief Despite Disappointment

Kyiv may feel let down that the EU stopped short of using frozen Russian assets. However, securing alternative financing still offers Ukraine much-needed relief at a critical moment.

The EU loan ensures continued support, even as debates over Russian assets and legal risks remain unresolved.