The Russian president said that using the frozen assets to fund Ukraine’s defense would “undermine trust” in the Eurozone.

For months, the European Union wrestled with whether to use the Russian assets it froze after Moscow launched its full-scale invasion of Ukraine in 2022—assets worth nearly $250 billion.

However, after negotiations that ran late into the night, EU member states failed to reach an agreement and instead settled on a different approach.

Rather than drawing on the frozen Russian funds, Europe announced early Friday that it would provide Ukraine with 90 billion euros ($105 billion) in loans to support its economy and military through 2027.