The EU is deciding whether to loan tens of billions of euros of Russian money to fund Ukraine's military and economic needs.

Russian President Vladimir Putin warned on Friday of risks for international reserves held by the world's top oil producers in the European Union, following discussions by EU leaders about using Russian assets to finance Ukraine.

A core question for European Union leaders discussing whether to use frozen Russian assets to help Ukraine is whether the idea is legally sound.

The European Union is on the precipice of a momentous decision on whether to use frozen Russian assets to finance more support for Ukraine. Critics argue the plan is legally questionable and risks retaliation by Moscow.

Europe has “failed to rob” Russia of its frozen assets, President Vladimir Putin has said in the aftermath of a deal to offer Ukraine a massive €90bn interest-free loan. It did not reach an agreement on the use of frozen Russian assets. “They failed to rob, due to grave consequences for the robbers,” he said.

President Vladimir Putin said on Wednesday Russia would take more land in Ukraine by force if Kyiv and European politicians whom he cast as "young pigs" did not engage over U.S. proposals for a peace settlement.

The European Union has imposed sanctions on five businessmen linked to Russian oil companies Lukoil and Rosneft.