Live. EU summit: Leaders seek fast solutions to spiralling energy prices

Portuguese Prime Minister Luís Montenegro describes the US decision to strike a diesel deal with Russia as "incoherent" and "inconsequent".

Montenegro said it gives a "bad signal" as high prices will be limited.

"We need one intervention that will be diplomatically efficient to sustain this surge in prices, which are absurd and insane," Montenegro added.

Lisbon recently hailed its transatlantic relationship with the US after US Secretary of State Marco Rubio visited last week.

The EU's top diplomat told Euronews that Russian oil refineries are to be considered legitimate targets, since they are the main source of financing for Moscow's war of aggression.

“If we look at international law, it is clear that [hitting refineries] is in defence of Ukraine because that is where the funding comes from for this war to kill Ukrainian people every day,” she told Euronews in an exclusive interview.

The remarks come after the US government announced a deal for Russia to supply more than 300,000 tonnes of diesel and an "energy ceasefire" between the two belligerents.

Meanwhile, Ukrainian President Volodymyr Zelenskyy said Kyiv will resume strikes on Russian oil refineries, accusing Washington of suspending intelligence-sharing and disrupting Starlink satellite internet services amid intensified Russian attacks on Ukraine.

Kallas: Ukraine’s attacks on Russian refineries are self-defence

EU foreign policy chief Kaja Kallas says Ukraine’s strikes on Russian refineries are legitimate, as Kyiv vows to resume them despite Trump’s energy ceasefire.…

Europe’s defence ambitions risk being undermined by its energy costs, Latvia’s PM Andris Kulbergs warned, arguing that the EU must tackle expensive energy if it wants to strengthen its military capabilities and remain economically competitive.

Responding to questions about resistance from countries such as Germany to spending more on European security, the Latvian PM linked the political dispute over funding directly to the weakness of the European economy.

“If we would have a flourishing economy, the discussions would be much easier,” he said, describing energy as the fuel for production, exports and economic growth.

Czechia’s Prime Minister Andrej Babis sharply attacked the Emissions Trading System (ETS) and carbon taxes, blaming carbon market speculators for destroying Europe's competitiveness.

“Someone is making billions at the expense of the European industry, which is in decline and which of course has major problems,” Babis said.

Babis said EU climate policies are "ideological stuff" that ignore economic realities. He added that carbon allowance prices skyrocketed far past original forecasts, arguing that the system rewards financial gamblers while punishing traditional manufacturing and regular citizens.

Babis and his Italian counterpart Giorgia Meloni have recently urged Brussels to provide immediate economic oxygen to struggling European factories. 

Lithuanian President Gitanas Nausėda has warned that Europe and its allies must continue to support Ukraine against Russia as it is a "family" and that the Kremlin wants more than just territorial gains.

"Please let's stay united in our family, because Russia is challenging our style of life, our rules, our rule of law, democratic rules, human rights, everything," he said as he arrived at the European Council summit on Thursday.

"It would be naive to expect that they (just) want to conquer more territories. They are challenging the Westerns' style of life."

Lithuania, alongside fellow Baltic nations Estonia and Latvia, remains among Ukraine’s strongest supporters within the EU, having repeatedly warned against international leniency towards the Kremlin.

The Baltic trio are expected to use the European Council summit to revive previously rebuffed plans to restrict visas for Russian nationals, alongside other measures.

Latvia's PM Andris Kulbergs said Brussels should "execute sanctions" against Russia, highlighting the EU’s failure to harmonise restrictions on the company’s products, which ultimately reach Russia.

"If we put them in place, we should execute them," the Latvian leader said, noting that Russia is getting its upper hand by transiting the grain through Baltic countries.

"That's putting a big pressure. And that's not the way it should happen (...) We don't want to fuel the Russian war machine, and unfortunately, that's happening," Kulbergs said.

The Russians will not get what they want by reaching a deal with the US alone, the EU's top diplomat told Euronews in an exclusive interview, arguing Moscow has miscalculated because the Europeans have kept supporting Ukraine and Kyiv has not surrendered.

“The message is that you need to talk to the Europeans," she said, arguing that the diesel deal and energy ceasefire are a gift to Russia's President Putin.

Kallas reiterated that international pressure should fall on the aggressor to stop the war, not on the victim to surrender, a position she said Europe has consistently held.

“If we did this together with the US, then the message to Russia would be clear: stop this war, and all your worries when it comes to oil refineries and whatnot will also stop,” she added.

Russia miscalculated in sidelining Europe, Kallas tells Euronews

EU foreign policy chief Kaja Kallas tells Euronews Russia has miscalculated by seeking a deal with Washington alone, stressing that Europe will continue to bac…

Dutch Prime Minister Rob Jetten, a leading member of the so-called "frugals" seeking to cut spending, has renewed his plea for a slimmer, more modern EU budget. The current proposal drafted by Ireland's EU presidency has enraged the frugal camp, who aim for even larger cuts. The topic is set to divide leaders later today.

"In the end, we need a good Multiannual Financial Framework (MFF). So, of course, everyone wants to make speed. But it's more important to have a good deal than a bad deal," Jetten said as he arrived.

"At the moment, the proposal by the Irish presidency is not good enough to reach an agreement. And we have to downsize and modernise this MFF if we want it to be fit for the future," he added.

"The MFF proposal as we have on the table right now is not good enough for the Netherlands because we want to prioritise what's ahead of us: our competitiveness, our safety and our future welfare. And if you want a budget that's fit for that, we need to downsize and modernise the proposal that's on the table right now."

The stark differences among capitals bode ill for the goal of reaching a unanimous deal by December this year.

Rob Jetten, the prime minister of the Netherlands, is among the first to arrive at the summit. In his remarks, he urged his European allies to ramp up financial and military aid to Ukraine.

"There is only one reason why this senseless war of aggression is continuing, and that's because Putin chooses to do so. He is the one who can end this war by starting negotiations for a just and lasting peace," Jetten said, reflecting on the latest US overture to Moscow.

"And as long as he doesn't, the Ukrainians will have to defend themselves and defend European values. And we stand shoulder to shoulder with the Ukrainians, and they have to do whatever is necessary to protect the Ukrainian people," he went on.

"I call upon all the European leaders to do more financially, militarily and non militarily because a lot of European countries are lagging behind in the support for Ukraine. So let's step up our game and make sure that they can win this senseless war."

The Netherlands, a leading donor to Ukraine, has long complained that other EU countries are not doing enough to back Kyiv's fight against Russia. The country is among those that support the use of the immobilised Russian assets, which would exempt European taxpayers.

Credit: Associated Press.

Finland, Denmark and Sweden warned EU leaders that watering down the EU's carbon market, the Emissions Trade System (ETS), would undermine investment in clean technologies and those who have already invested.

"Any weakening of the ETS would undermine the predictability on which investment decisions depend and risk slowing the pace of industrial decarbonisation," reads a letter penned by the three EU countries and seen by Euronews.

The Nordics argue that cutting ambition would also "shift the burden of emission reductions to other sectors of the economy", where mitigation options are often more difficult and politically difficult.

The ETS debate is about to heat up again as EU leaders try to counter soaring energy prices and argue that carbon pricing is yet another deterrent to the bloc's competitiveness — clashing with the EU's climate ambitions.

Italian Prime Minister Giorgia Meloni sharply criticised Donald Trump's diesel deal with Russia, calling it a “very risky choice” that legitimises Moscow while undermining Western sanctions.

Speaking in the Italian parliament on Wednesday ahead of the EU summit in Brussels, Meloni warned that the agreement could weaken economic pressure on Russia and undermine efforts to bring Vladimir Putin to the negotiating table.

Volodymyr Zelenskyy, who was visiting London on Wednesday, responded in a post on X, thanking Meloni for her “clear, unequivocal, and principled stance” and for understanding what was needed to secure a dignified and lasting peace.

Zelenskyy also praised British Prime Minister Andy Burnham during their talks at Downing Street, as the UK pledged to accelerate military assistance to Ukraine and pursue further sanctions against Moscow.

Burnham reaffirmed Britain's unwavering support for Ukraine, pledging to accelerate deliveries of air-defence missiles, while also saying he would seek to repair relations between Kyiv and Washington following Trump's controversial diesel deal with Moscow.

Volodymyr Zelenskyy said Ukraine is losing a key ally in the US and admitted feeling betrayed by Donald Trump, as relations between Kyiv and Washington hit a new low ahead of a crucial EU summit in Brussels.

Speaking to British broadcaster Piers Morgan during his visit to London on Wednesday, Zelenskyy was asked whether Ukraine was losing American support.

“Yeah, but not because of us. We can't be weak,” he replied.

“It's painful when President Trump chooses one side, not our side,” Zelenskyy said.

Asked whether he felt betrayed, he answered: “Really, yes,” although he stressed that the situation was more complicated than his personal feelings.

His remarks come as Washington eases restrictions on Russian diesel exports while stepping up pressure on Kyiv over its strikes on Russian oil infrastructure.

Zelenskyy is due in Brussels on Friday to seek renewed European backing, with EU leaders set to discuss continued support for Ukraine as the country braces for another difficult winter

Ukraine's European allies rebuffed a plan floated by the United States to release a share of the immbolised assets of the Russian Central Bank as a way to incentivise Moscow into the peace talks, according to the Financial Times.

The plan was presented last Friday during talks in Miami that included US special envoys Steve Witkoff and Jared Kushner and senior officials from Germany, the United Kingdom, France, the European Commission and NATO.

According to EU law, the Russian assets can be released only if three conditions are met:

• Russia ceases its war against Ukraine
• Russia pays reparations to Ukraine
• Russia ceases to represent a risk to the European economy

This two-day summit is particularly packed when it comes to hot-button issues: energy, China, budget, enlargement, Ukraine, hybrid and migration are among the topics. Here's what to expect.

EU leaders tackle energy prices, spar over budget and unite on Ukraine

The two-day summit of EU leaders comes with a packed agenda topped by energy prices, the long-term budget and Russia’s war on Ukraine. Hybrid warfare, enlargem…