European Union leaders decided on Friday to borrow cash to loan 90 billion euros ($105 billion) to Ukraine to fund its defense against Russia for the next two years rather than use frozen Russian assets, sidestepping divisions over an unprecedented plan to finance Kyiv with Russian sovereign cash.

The leaders also gave the European Commission a mandate to keep working on a so-called reparations loan based on Russian immobilized assets, but that option proved unworkable for now, above all due to resistance from Belgium, where the bulk of the assets is held.

"Today we approved a decision to provide 90 billion euros to Ukraine," EU summit chairman Antonio Costa told a press conference early on Friday morning after hours of talks among the leaders in Brussels. "As a matter of urgency, we will provide a loan backed by the European Union budget."

The idea of EU borrowing initially seemed unworkable as it requires unanimity and Hungary's Prime Minister Viktor Orban had opposed it. But Hungary, Slovakia and the Czech Republic agreed to let the scheme go ahead as long as it did not impact them financially.

The EU leaders said Russian assets, totaling 210 billion euros in the EU, will remain frozen until Moscow pays reparations to Ukraine. If Moscow ever takes such a step, Ukraine could then use the money to pay back the loan.