BRUSSELS — European leaders agreed Friday to help keep Ukraine funded for two years with a loan of 90 billion euros, or about $105 billion, though they decided against using frozen Russian assets to pay for the support.

That ambitious frozen-asset plan was killed at the eleventh hour as European heads of state and government met in Brussels — a show of division that risked making the European Union appear indecisive at a key moment.

Instead, European leaders announced that they will funnel money to Ukraine with a loan backed by the EU budget. Because the plan does not leverage the large stash of Russian savings immobilized in Europe, it is likely to cost more.

But because it will still get needed cash to Ukraine, officials celebrated it as a win.

“This will address the urgent financial needs of Ukraine,” Antonio Costa, president of the European Council, said at an early morning news conference in Brussels.

He added that the European Union would reserve its option to eventually use Russia’s frozen assets. European nations took action last week to freeze those savings indefinitely.

The funding plan comes at a crucial moment, as Ukraine negotiates potential peace terms with the United States. And timing was important, with Ukraine expected to begin running out of money early in 2026.

“Ukraine has received a financial security guarantee for the coming years,” President Volodymyr Zelenskyy of Ukraine wrote in a social media post Friday morning.

Ukraine faced an imminent budget crunch and deep uncertainty over how long it could sustain its war effort. The interest-free loan, which will cover roughly two-thirds of the country’s financial needs for the next two years, largely resolves both issues.

It also bolsters Ukraine’s position in the ongoing peace talks, weakening Russia’s argument that Kyiv is running out of resources and should settle for a deal now. Ukrainian negotiators were in the United States on Friday to continue talks.

“It significantly strengthens our negotiating position, sending a signal to Putin, who was convinced that Ukraine would be left alone and that he would be able to squeeze it to the end,” said Viktor Taran, a Ukrainian political scientist and a major in the Ukrainian armed forces, referring to Russian President Vladimir Putin.