Once EU leaders reach agreement on the use of frozen Russian assets for Ukraine's benefit, the European Parliament will resort to an emergency procedure to speed up the adoption of a "reparations loan" for Ukraine.

Source: European Parliament's press service, as reported by European Pravda

Details: Members of the European Parliament are preparing to vote on a proposal to grant Ukraine a "reparations loan" at a plenary session in January 2026.

On Tuesday 16 December, the European Parliament supported a request to fast-track the legislative process for the draft law on providing the loan to Ukraine.

"This new instrument, if adopted, would support Ukraine's financial needs and state budget, including military capabilities, as well as the country's defence industry and its integration into the European Defence Industrial Base. The proposed loan is linked to the existing Ukraine Facility and Ukraine Loan Cooperation Mechanism," the European Parliament explained.

After the European Parliament launches the relevant work, the proposal will also need to be approved by EU member states. It is expected that EU heads of state and government will seek to reach agreement on further steps at the EU summit in Brussels on 18-19 December 2025.

Background:

• On 12 December, EU ambassadors decided to freeze Russian assets held in Europe for an indefinite period in order to prevent their future unfreezing through vetoes by countries such as Hungary.
• Russia, for its part, has stepped up additional "intimidation" of Belgium and is demanding nearly US$230 billion from Belgium-based Euroclear in a Russian court.

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