EU Parliament backs fast-track procedure for Ukraine reparations loan

Bloc wants to use nearly $246B in frozen Russian assets to support Kyiv

The European Parliament on Tuesday agreed to fast-track legislation on a proposed EU reparations loan for Ukraine, paving the way for a vote at the January 2026 plenary session.

The lawmakers approved the use of the parliament’s urgency procedure to speed up work on the draft legislation, which would establish a new EU loan mechanism to support Ukraine’s financial needs.

Under the proposal, the European Commission would raise funds by borrowing against the profits and cash balances generated by immobilized Russian state assets.

The loan would be used to support Ukraine’s state budget, including military capabilities, its defense industry, and the country’s integration into the European Defense Industrial Base.

Following Tuesday’s decision, the parliament is expected to adopt its position on the proposal during its next plenary session, scheduled for Jan. 19–22, 2026, ahead of negotiations with EU member states.

The legislation must also be approved by EU governments, with the leaders expected to discuss the way forward at a European Council summit in Brussels on Dec. 18–19.

If EU heads of state and government endorse the proposal at the summit, the European Parliament could give its final approval at the January plenary.

About €210 billion ($246 billion) in Russian assets are frozen in the EU, and the bloc proposes using the funds to support Ukraine. However, most of the frozen Russian assets are held by the Belgian bank Euroclear, and Belgium has repeatedly raised concerns about the plan.