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

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.

EU leaders’ €90-billion loan to Ukraine draws sharply contrasting reactions with Moscow calling it a “major blow,” while Zelenskyy hails it as a vital boost to Kiev’s defence and financial stability.

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

The European Union adopted fresh sanctions against Russian oil interests on Monday, targeting traders Murtaza Lakhani and Etibar Eyyub for helping Moscow to circumvent Western sanctions on crude exports that help to fund Russia's war in Ukraine.

Leaders of eight easternmost European Union nations are gathering in Helsinki on Tuesday to plot a roadmap for how to secure as much funding as possible for building up defenses against Russia.