The European Parliament has taken significant steps to expedite the legislative process concerning a reparations loan to Ukraine, with a vote scheduled for the plenary session in January 2026. On Tuesday, Members of the European Parliament (MEPs) expressed their support for accelerating the development of this critical draft legislation through a show of hands.
The proposed EU reparations loan aims to provide financial assistance to Ukraine, underpinned by the European Commission’s intention to borrow against the revenues and cash balances derived from immobilised Russian state assets. If approved, this financial instrument will address Ukraine’s ongoing financial requirements, support its state budget—including military capabilities—and enhance the defence industry and its integration into the European Defence Industrial Base.
This proposed loan aligns with the existing Ukraine Facility and the Ukraine Loan Cooperation Mechanism. As a result of the decision to expedite the legislative process, MEPs will establish their position on the proposal ahead of negotiations with member state governments during the upcoming plenary session, scheduled for 19 to 22 January 2026.
As the European Parliament initiates its work on this matter, it should be noted that this proposal is part of a broader package that also requires validation from EU member states in the Council. Additionally, it is anticipated that EU heads of state and government will strive to reach a consensus on the way forward during the upcoming EU summit in Brussels on 18-19 December 2025.
