Members of the European Parliament vote to apply the urgent procedure to finalize the proposal for a loan based on frozen Russian assets until January 2026.
Brussels, December 16, 2025 – The European Parliament has decided to accelerate the legislative process for a new financial instrument aimed at supporting Ukraine. On Tuesday, MEPs supported, by a show of hands, a request to treat the legislative project for a repair loan under urgent procedure, with the aim of adopting a position during the next plenary session in January 2026.
In short The proposal introduces a repair loan supported by loans from the European Commission guaranteed by the profits and cash balances generated by the frozen Russian state assets.
If adopted, the fund will support Ukraine's state budget and military capabilities, including the integration of its defense industry into the European framework.
EU heads of state are expected to try to reach a commitment regarding this package during the EU summit taking place in Brussels at the end of this week.
The proposed instrument is linked to the Ukraine Facility and the Cooperation Mechanism for loans granted to Ukraine. It operates by allowing the EU to borrow funds using exceptional profits from frozen Russian sovereign assets as collateral. This financial structure is intended to provide immediate support for Ukraine's financial needs without placing a direct burden on European taxpayers.
Following the decision to accelerate the process, the Parliament will adopt its position before negotiations with the governments of the member states during the scheduled plenary session from January 19-22, 2026. However, the proposal must also be approved by the Council. The upcoming EU summit on December 18-19, 2025, will be a critical moment, as national leaders are expected to discuss the way forward and try to reach a political commitment regarding the package.
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