European Parliament paves way for vote on proposed loan for Ukraine
Members agreed to invoke the chamber’s urgency procedure, allowing work on the draft law to advance more quickly than under standard legislative timelines. The proposal outlines the creation of a new EU-level lending instrument intended to help cover Ukraine’s ongoing financial requirements.
Under the planned mechanism, the European Commission would obtain financing by borrowing against revenues and cash flows generated from frozen Russian state assets held within the bloc, as stated by reports. The funds raised through this approach would be channeled into Ukraine’s national budget, with allocations covering military capacity, defense industrial development, and the country’s gradual integration into the European Defense Industrial Base.
Following the decision to fast-track the file, lawmakers are expected to formalize the Parliament’s negotiating position at the next plenary sitting, scheduled for January 19–22, 2026. This would occur before formal talks begin with EU member governments.
Approval from national governments remains a requirement. EU leaders are expected to debate the proposal’s next steps during a European Council meeting in Brussels set for December 18–19. Should heads of state and government give their backing at that summit, the European Parliament would be positioned to deliver its final endorsement during the January plenary session.
Reports indicate that roughly €210 billion in Russian assets remain frozen across the EU, and the bloc has proposed leveraging these funds to assist Ukraine. However, concerns persist, particularly because a large share of the assets is held by a Belgian financial institution, and Belgian authorities have repeatedly expressed reservations about the plan.
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