The breaching of sanctions against Russia by third countries impacts the effectiveness of the measures, President Nikos Christodoulides said early on Friday after a night-long European Council session, which spent six hours discussing the financing of Ukraine.

“We are glad that there is a special reference to the issue of purchasing equipment by Ukraine with the financial assistance of the European Union, which excludes countries like Turkey,” Christodoulides said.

He explained that “there was an agreement on a loan from the European Union, which will be given to Ukraine, and the discussion on the utilisation of Russian funds will continue at the level of the committee of permanent representatives”.

Christodoulides said issues were raised concerning “the legal clarity of such a decision and discussions will continue”, citing the EU’s October commitment to find a solution.

Of Thursday night’s talks, he said the discussion “lasted six hours in relation to the legal, if you will, clarity which should characterise such a decision”, before making reference to the fact that EU leaders had failed to agree on whether frozen Russian assets should be utilised to finance Ukraine’s war effort.

“Concerns were expressed by several member states and in this context it was decided to continue the discussion at the level of permanent representatives on the utilisation of specific Russian funds,” he said.

However, he stressed, “the second option was utilised”, he said, referring to a €90 billion loan to Ukraine agreed on by EU leaders instead of the sending of frozen Russian assets.

“Let me remind you that the European Commission had put before the European Council two options, for the European Commission to borrow and for Ukraine to receive financial support. There was an agreement on this option,” he said.

The president clarified that the loan would not burden the budgets or public debts of member states.

Regarding the three states that chose to opt out the guarantees on the loan, Christodoulides explained that the funds of Hungary, Slovakia and the Czech Republic “will not be used as guarantees for the loan to Ukraine”.

Christodoulides reminded that Cyprus faced a similar issue when it donated for refugees, on condition that its money did not reach Turkey, but Lebanon and Jordan.

“The legal texts will be drawn up by the committee of permanent representatives at the level of Coreper, which has to do with the defence and security issues of EU member states. This was the reference added with our intervention as well, so that this is ensured,” he added.