European leaders push back on frozen assets

European leaders rejected a US proposal that was reported to target the release of Russian assets worth billions of euros held in European financial institutions. Polish foreign minister Radosław Sikorski gave one of the firmest responses when asked about returning the frozen assets to Moscow, saying it would happen only over his country's dead bodies. German chancellor Friedrich Merz defended European control, arguing that decisions on assets frozen in Europe should stay in European hands. More than 210 billion euros of Russian central bank assets remain frozen in the European Union since Moscow's full-scale invasion of Ukraine in 2022. Some sources say Washington sees these funds as a possible bargaining chip in peace talks, while European governments insist Russia must stay under pressure.

A summit that stalled

The European Council summit in Brussels ran into trouble on Thursday, 15 October, when António Costa faced the sharpest criticism since he took over as president of the Council almost two years ago. Leaders were angry at how he handled energy price limits and negotiations on the next multiannual EU budget. The two-day meeting was due to continue on Friday, 16 October, but the first day ended after 14 hours of talks with limited results and divisions between member states deepened. Sixteen diplomats and officials spoke to POLITICO on condition of anonymity, and most of them criticized Costa's management, although some assessments were positive. Costa's spokesperson declined to comment. Finnish prime minister Petteri Orpo warned that the longer budget talks drag on, the more difficulties the bloc will face, and said a solution must be found this year. The stakes are high because the EU wants to ease cost-of-living pressure and reach a budget deal before national elections next year.

Energy truce and refinery strikes

Relations between Kyiv and Washington reached a critical point after Trump blamed Ukrainian strikes on Russian refineries for higher global fuel prices, a claim that experts have contested. Trump's team reportedly threatened to halt intelligence support and weapons deliveries if Kyiv did not stop the attacks. Washington then unexpectedly revealed an agreement allowing Moscow to export diesel to the United States and other markets despite sanctions imposed over the invasion. On 11 October Trump announced an energy truce between Russia and Ukraine on his own, catching Ukrainian officials by surprise. Kyiv said it had suspended strikes on Russian refineries from that moment, but Moscow kept hitting Ukraine's power grid without criticism from Trump. Zelensky lifted restrictions on attacks on Russian refineries on 15 October, after Russia continued to strike Ukraine's energy infrastructure.

Trump and Zelensky trade blows

Speaking at a press conference in Brussels on Friday, 16 October, Zelensky said Kyiv was in constant contact with Trump's negotiators and expected a meeting at some level within days. He said Ukraine would stop attacking refineries if it received protection for its energy sector against ballistic missiles, but CNN reports that Ukraine no longer has any Patriot missiles. Zelensky also repeated that the Trump-Putin diesel agreement was concluded without prior notice to Ukraine. Asked whether he felt betrayed by Trump, he answered yes, while adding that the situation was more complicated than his emotions. Trump had not yet responded to the latest Ukrainian comments, according to the source. In earlier remarks, Trump said Zelensky was not someone the United States could work with and that he was not a big fan of him.

Allies question the diesel deal

Petteri Orpo told POLITICO in an interview at the summit that there was no logic in Washington's move closer to Moscow, and that the real allies of the United States are in Europe. He noted that Finland shares a land border of about 1,300 kilometres with Russia, the longest of any EU member state, and said that if he were in Trump's place he would not trust Vladimir Putin. The Trump administration argues the diesel deal could help lower fuel prices for American consumers, while Kyiv's allies fear the extra revenue for Moscow could finance the war. Press reports cited in the coverage say the arrangement also restricts Kyiv's access to military intelligence and to technology needed to counter Russian attacks. Andrej Babiš accused Trump of betrayal over the agreement and said something had to be done. Mediafax reports that US authorities excluded fuel deliveries from the sanctions list until April 2027, and that Trump asked Zelensky to resign and suggested he could cut military aid to Ukraine.