EU Parliament Accelerates Vote on Ukraine Reparations Loan

(MENAFN) On Tuesday, the European Parliament consented to accelerate the legislative process for a proposed European Union reparations loan aimed at Ukraine, clearing the path for a formal vote during the January 2026 plenary meeting.

Members of Parliament endorsed the activation of the chamber’s urgency procedure, allowing faster progress on the draft law. This initiative would create a new EU lending framework designed to address Ukraine’s pressing financial requirements.

According to the proposal, the European Commission would obtain financing by borrowing against earnings and liquid reserves derived from frozen Russian state assets.

The resulting loan would help finance Ukraine’s national budget, covering areas such as military capacity, the defense sector, and the nation’s integration into the European Defense Industrial Base.

After Tuesday’s approval, lawmakers are anticipated to finalize the Parliament’s stance on the plan at the next plenary session, set to take place from Jan. 19 to Jan. 22, 2026, before entering talks with EU member governments.

The measure also requires consent from EU governments, with national leaders expected to examine the next steps during a European Council meeting in Brussels on Dec. 18–19.

Should EU heads of state and government support the initiative at that summit, the European Parliament would be positioned to grant final approval during the January plenary session.

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