| Welcome to the Brussels Edition. I’m Suzanne Lynch, Bloomberg’s Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you're signed up.
High-level discussions are in full swing in Brussels this afternoon, with EU leaders ensconced in European Council headquarters for a one-day summit. In a rare move for such meetings — best known for torturous negotiations that stretch into the early hours of the morning — today’s gathering began with an actual agreement. The EU signed off on its 19th sanctions package against Russia, a heavy-hitting proposal that targets Russian as well as Chinese and Indian entities. It came hot on the heels of Washington’s surprise move overnight to sanction Russian oil giants Rosneft and Lukoil. Arriving in Brussels this morning, President Volodymyr Zelenskiy hailed the EU sanctions decision and the US move, which marks the latest u-turn in President Donald Trump’s stance towards Russia. He also expressed hope that the US would ultimately agree to stump up Tomahawk missiles for Kyiv, noting that while it had been reluctant to sanction Russian energy before it had changed its tune.  Bart De Wever. Photographer: Simon Wohlfahrt/Bloomberg Even as the EU can pat itself on the back over its sanctions agreement, the discussion on tapping immobilized Russian assets to help Ukraine is set to be more contentious. Speaking on his way into the summit, Belgian Prime Minister Bart de Wever, whose country hosts most of the assets via Euroclear, warned that Belgium would block the plan if three red lines are not met — including that other EU countries share the risk, and that other non-EU countries fulfill their responsibilities. De Wever, who has been struggling for an accord on a national budget with his coalition partners in the Belgian government, also warned that the move could “backfire,” and Moscow could target European companies in Russia or countries sympathetic to it. European Council President Antonio Costa, who chairs the summits, expressed confidence this morning that political agreement would be reached today on the next stage – giving the European Commission a mandate to come forward with a proposal. De Wever himself said he hasn’t yet seen a proposal, which promises to be a fiendishly complex solution. Bloomberg previously reported that the commission is considering a “tailored debt contract” with a 0% interest rate to be triggered if Euroclear ends up being forced to honor any potential future Russian claims. Divisions have also emerged about how the money from the frozen assets should be used by Ukraine, with France arguing that Kyiv should use the funds to buy EU-only weapons. Leaders are discussing the issue this afternoon, with ECB President Christine Lagarde due to address leaders over dinner. But the real fight tonight may be over climate and simplification measures, amid a push-back across Europe towards the green transition. Some countries also want to discuss China’s increasingly restrictive practices. “We won’t accept what’s happening right now,” German Chancellor Friedrich Merz said on his way into the summit, referring to Beijing’s move to restrict rare earth exports. Italian Prime Minister Giorgia Meloni warned that the car and energy-intensive industries need to be protected. It could be a long night ahead. | 
