On December 19, European Union leaders agreed on a political decision to provide Ukraine with €90 billion in funding for 2026-2027. The agreement is still being drafted, with details such as payment mechanisms and repayment terms yet to be determined. The so-called reparations-based mechanism means that Ukraine will repay the credit only after it receives compensation from Russia. However, a final decision on using frozen Russian assets as collateral could not be reached, as several EU countries cited legal concerns and opposed such a move.
Former US President Donald Trump urged Ukraine to act swiftly in negotiations with Russia, emphasizing the limited time available. This weekend, delegations from both sides are expected to meet in Florida with Trump representatives present. French President Emmanuel Macron stressed the importance of direct dialogue between Europe and Russia, highlighting the need for frameworks for negotiations and European involvement in the peace process.
The US announced plans to toughen sanctions against Russia's energy sector, while also lifting restrictions on a number of companies that previously exported sanctioned equipment to Russia. This decision has sparked controversy regarding Washington's future sanctions policy.
Meanwhile, the Russia-Ukraine front remains tense: Ukraine shot down 108 out of 160 enemy drones overnight, and key energy and rail infrastructure in Odesa came under heavy attack.
The EU is shaping multi-level security guarantees for Ukraine: the US will provide intelligence and monitoring, while European countries will support from a distance from the frontline. Political support remains despite EU leaders' disagreements over using Russian assets for reparations.
