EU Parliament accelerates Ukraine aid vote under urgent procedure, including a 90 billion euro loan agreement.
Ukraine Aid Fast-Tracked
On 20 January, the European Parliament announced it will use an urgent procedure to vote on a loan proposal supporting Ukraine during its next plenary session. This shortens proceedings to a minimum, and parliamentarian approval for the loan is assured. Parliament also expedited work on changing the Ukraine Facility financial instrument and on a Council decision to enable enhanced cooperation, allowing 24 member states (excluding Czechia, Hungary, Slovakia) to grant the loan. The vote is set for 21 January. Following Parliament’s start, the loan must be agreed between parliamentarians and the Council under ordinary legislative procedure.
Loan Mechanism Explained
The EU will borrow money on financial markets, backed by the European budget, to provide the loan to Ukraine. This is a backup plan, as originally using frozen Russian assets was rejected due to lack of consent from Belgium, where most are held. Ukraine will repay the loan only after receiving war reparations from Russia. On 20 January at the World Economic Forum in Davos, European Commission President Ursula von der Leyen stated: “This will strengthen Ukraine on the battlefield and boost its defense capabilities. Europe will always support Ukraine until there is a just and lasting peace.”
Fund Allocation Details
Two-thirds of the total allocated funds, 60 billion euros, will be for military support. The remaining 30 billion euros will maintain state functions and basic public services. Military equipment purchased by Ukraine with these funds should primarily be European. If unavailable immediately, Brussels allows purchases elsewhere, such as from the US.
