EU Agrees to Accelerate USD246B Ukraine Loan Using Russian Assets

(MENAFN) European Parliament lawmakers voted Tuesday to accelerate legislative procedures for a groundbreaking EU reparations loan program benefiting Ukraine, setting the stage for a critical vote during the January 2026 plenary gathering.

Parliamentary members greenlit an emergency fast-track protocol to expedite consideration of draft measures that would create a novel EU lending framework addressing Ukraine's fiscal requirements.

The mechanism outlined by the European Commission involves capital acquisition through debt instruments backed by returns and liquid reserves from frozen Russian state holdings.

Ukraine would deploy the financing to shore up governmental expenditures, encompassing defense capabilities, armaments production, and alignment with the European Defense Industrial Base.

Tuesday's parliamentary action positions legislators to finalize their stance on the measure between Jan. 19–22, 2026, during the upcoming plenary before entering discussions with EU member nations.

EU governments must also grant authorization, with national leaders anticipated to deliberate the initiative's trajectory at a European Council summit in Brussels spanning Dec. 18–19.

Should EU heads of state and government authorize the framework during the summit, European Parliament could deliver conclusive ratification at the January plenary session.

Approximately €210 billion ($246 billion) in Russian holdings remain immobilized throughout the EU, with the bloc advancing plans to channel those resources toward Ukraine. Yet complications persist as the majority of frozen Russian assets sit within Belgian financial institution Euroclear, prompting Belgium to voice recurring objections regarding the strategy.

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