European Union leaders on Thursday tasked the European Commission to move ahead with proposals to fund Ukraine for the next two years, leaving the door open for a mammoth loan funded by frozen Russian assets, diplomats told Agence France-Presse.

In broadly worded conclusions adopted after marathon talks in Brussels, EU leaders stopped short of giving the green light to plans for the €140 billion (US$162 billion) “reparations loan” – pushing that crunch decision to December.

But several diplomats said the text was a step towards a potential agreement – though it had to be watered down in the face of strong objections from Belgium, where the bulk of the Russian central bank funds are held.

European Council President Antonio Costa said the bloc had “delivered an important message”.

“The EU is committed to addressing Ukraine’s pressing financial needs for the next two years, including support for its military and defence efforts,” Costa wrote on social media. “Russia must stop the war immediately.”

Costa also said that a discussion with European Central Bank and Eurogroup presidents indicated that the reparation loan proposal is in line with European and international law, Reuters reported.

Earlier in the day, Ukraine’s President Volodymyr Zelensky had urged EU leaders to agree to the proposal – with new funding sources seen as vital for keeping Ukraine afloat.