World
EU weighs Plan B for Ukraine as Belgium raises bar on reparations loan
European Union leaders are coming to terms with the idea that an emergency funding solution to keep the Ukrainian economy afloat will have to be deployed after Belgium raised the bar higher to unlock a reparations loan that would bolster Kyiv’s finances.
The solution could see the EU raise money on the markets to deliver a non-repayable grant to Kyiv that would cover its most immediate financial and military needs in 2026.
This, in turn, would give leaders more time to break the deadlock over the proposed loan, a bold attempt to channel the immobilised assets of the Russian Central Bank to Ukraine.
The bulk of the assets, around €185 billion, is kept at Euroclear, a central securities depository in Brussels. This makes Belgium the cardinal vote in the debate.
Initially, EU leaders were expected to be able to assuage the Belgian reservations and sign up to the unprecedented project during their next meeting on 18 December.
In a new twist in the long-running saga, Belgian Prime Minister Bart De Wever penned a scathing letter to Ursula von der Leyen, blasting the reparations loan as “fundamentally wrong” and ridden with legal and financial pitfalls.
“Why would we thus venture into uncharted legal and financial waters with all possible consequences, if this can be avoided?” De Wever tells the president of the European Commission in the letter. “I will never commit Belgium to sustain on its own the risks and exposures that would arise from the option of a reparations loan.”
Upping the ante, De Wever demands “legally binding, unconditional, irrevocable, on-demand, joint and several guarantees” to cover the €185 billion of the assets and all the potential fallout, such as arbitration costs, interests, investment opportunity loss and even the “quantification of financial impact to the Central Bank of Russia’s credit”.
He also asks for total coverage for Euroclear’s holdings in “Russia-friendly jurisdictions”, which he said could be subject to retaliatory measures from the Kremlin.
“Some may hold the belief that this is only a theoretical exposure. l am making the point that this danger is, to the contrary, real and likely to happen,” De Wever writes.
By raising the bar so high for the guarantees, which are a crucial element to unlock the reparations loans, De Wever makes its approval exponentially more difficult.
It is unlikely that the other leaders will be able to show up at the summit in December with multi-billion guarantees that rely for the most part on a hypothetical calculus. For some countries, such a complex structure would require the blessing of their parliament.
The hurdles are weighing heavily in the minds of EU officials and diplomats as they rush to break the deadlock before Ukraine runs out of foreign aid. The country expects a fresh injection of assistance in the second quarter of 2026 at the latest.
Adding to the pressure is an $8.1 billion programme that the International Monetary Fund (IMF) is meant to grant Ukraine. For the IMF to make a final decision, it will need firm commitments by European allies to ensure Kyiv’s macro-economic stability.
The mounting urgency has drastically raised the odds for a bridge solution to plug the gap. The interim financing could be backed by either national guarantees or the EU budget, which currently forbids borrowing for a country outside the bloc.
Tweaking the budget’s rules would need unanimity, a tall order given Hungary’s adamant opposition to aiding Kyiv in any capacity. The same obstacle would remain if leaders chose joint debt as the long-term arrangement to support Ukraine.
The Trump factor
In his letter, De Wever goes beyond law and economics and dives headfirst into politics.
The Belgian leader warns that pushing the reparations loan at this particular stage could imperil the White House’s efforts to secure a peace deal to end Russia’s war.
“Hastily moving forward on the proposed reparations loan scheme would have, as collateral damage, that we, as the EU, are effectively preventing reaching an eventual peace deal,” De Wever tells von der Leyen.
“We can hardly engage the Russian sovereign assets for multiple purposes at the same time. Either they are immobilised for the purpose of financing reconstruction of Ukraine, or they are spent now on financing war efforts or Ukraine’s core budget.”
De Wever argues that it is “very probable” that Russia will not be declared the “losing party” in the conflict and therefore be entitled to recover its sovereign property currently under sanctions. If this happens, he adds, the reparations loan will fall apart and European taxpayers will have to foot the bill themselves.
This section in the letter stands in stark contrast with the position advocated by other leaders, who see the Russian assets as the bloc’s most powerful leverage.
“We must quickly reach an appropriate agreement by the EU leaders’ summit in December at the latest to strengthen our negotiating position and send another signal of solidarity and support to Ukraine,” German Chancellor Friedrich Merz said on Thursday.
Von der Leyen has also framed her proposal under a moral lens to “make Russia pay”.
“To be very clear – I cannot see any scenario in which the European taxpayers alone will pay the bill. This is also not acceptable,” she said this week.
The internal disagreements come at a precarious time for Europeans, who were caught off guard by a 28-point peace plan secretly drafted by US and Russian officials and are now scrambling to close ranks and project political unity.
The original draft pitched a highly controversial model that would use the Russian assets for Washington’s and Moscow’s commercial benefit. The provision is believed to have been removed after high-level talks in Geneva between the US and Ukraine.
Still, the text highlighted the value of the Russian assets. For some, it confirmed the need to approve the reparations loans. For others, it prompted second thoughts.
Hours before De Wever sent his letter to von der Leyen, Russian President Vladimir Putin warned that touching the funds would amount to the “theft of someone else’s property”.
(Under the proposal, Moscow would be allowed to recover the immobilised assets if it agreed to compensate Ukraine for the damages caused by the war.)
“The government of the Russian Federation, by my assignment, develops a package of reciprocal measures in case this happens,” Putin said during a briefing.
In awkward timing for Kyiv, the debate on the reparations loan coincides with a spiralling corruption scandal that precipitated the resignation of Andriy Yermak, President Volodymyr Zelensky’s powerful chief of staff and main negotiator in the peace process.
A diplomat told Euronews that President Zelensky will “have to straighten out the situation as it looks really bad”, and the optics make it significantly more challenging for Europe to sign off on another round of funding.
Still, diplomats insist that aid for Ukraine, a country on the front line of Russian aggression, should not be linked to the scandal.
For its part, the European Commission, which has been criticised for not taking De Wever’s initial concerns seriously, is putting on a brave face.
“These are uncharted waters, so it’s legitimate to ask questions, to share concerns,” said Paula Pinho, the Commission’s chief spokesperson. “We are really doing our utmost to address those concerns in a satisfactory manner so that everybody can feel confident and comfortable with any solution that is put forward eventually.”
Asked if the Commission was ready to override Belgium and push the reparations loan with a qualified majority, Pinho said: “We’re not there yet.”
World
Minnesota braces for what’s next amid immigration arrests and in the wake of Renee Good shooting
MINNEAPOLIS (AP) — Already shaken by the fatal shooting of a woman by an immigration officer, Minnesota’s Twin Cities on Sunday braced for what many expect will be a new normal over the next few weeks as the Department of Homeland Security carries out what it called its largest enforcement operation ever.
Protesters screamed at heavily-armed federal agents and honked car horns, banged on drums and blew whistles in attempts to disrupt their operations in one Minneapolis neighborhood filled with single-family homes.
There was some pushing and several people were hit with chemical spray just before agents banged down the door of one home on Sunday. They later took one man away in handcuffs.
“We’re seeing a lot of immigration enforcement across Minneapolis and across the state, federal agents just swarming around our neighborhoods,” said Jason Chavez, a Minneapolis city councilmember. “They’ve definitely been out here.”
Chavez, the son of Mexican immigrants who represents an area with a growing immigrant population, said he is closely monitoring information from chat groups about where residents are seeing agents operating.
People holding whistles positioned themselves in freezing temperatures on street corners in the neighborhood where 37-year-old Renee Good was shot and killed Wednesday, watching for any signs of federal agents.
More than 20,000 people have taken part in a variety of trainings to become “observers” of enforcement activities in Minnesota since the 2024 election, said Luis Argueta, a spokesperson for Unidos MN, a local human rights organization .
“It’s a role that people choose to take on voluntarily, because they choose to look out for their neighbors,” Argueta said.
The protests have been largely peaceful, but the Twin Cities remained anxious. Minneapolis public schools on Monday will start offering remote learning for the next month in response to concerns that children might feel unsafe venturing out while tensions remain high.
Many schools closed last week after Good’s shooting and the upheaval that followed.
While the enforcement activity continues, two of the state’s leading Democrats said on Sunday that the investigation into Good’s shooting death shouldn’t be overseen solely by the federal government.
Minneapolis Mayor Jacob Frey and U.S. Sen. Tina Smith said in separate interviews Sunday that state authorities should be included in the investigation because the federal government has already made clear what it believes happened.
“How can we trust the federal government to do an objective, unbiased investigation, without prejudice, when at the beginning of that investigation they have already announced exactly what they saw — what they think happened,” Smith said on ABC’s “This Week.”
The Trump administration has defended the officer who shot Good in her car, saying he was protecting himself and fellow agents and that Good had “weaponized” her vehicle.
Todd Lyons, acting director of ICE, defended the officer on Fox News Channel’s “The Sunday Briefing.”
“That law enforcement officer had milliseconds, if not short time to make a decision to save his life and his other fellow agents,” he said.
Lyons also said the administration’s enforcement operations in Minnesota wouldn’t be needed “if local jurisdictions worked with us to turn over these criminally illegal aliens once they are already considered a public safety threat by the locals.”
The killing of Good by an ICE officer and the shooting of two people by federal agents in Portland, Oregon, led to dozens of protests across the country over the weekend.
Thousands of people marched Saturday in Minneapolis, where Homeland Security called its deployment of immigration officers in the Twin Cities its biggest ever immigration enforcement operation.
___
Associated Press journalists Giovanna Dell’Orto in Minneapolis, Thomas Strong in Washington, Bill Barrow in Atlanta, and John Seewer in Toledo, Ohio, contributed.
World
Netanyahu and Rubio discuss US military intervention in Iran amid ongoing nationwide protests: report
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Israeli Prime Minister Benjamin Netanyahu and Secretary of State Marco Rubio discussed the possibility of U.S. intervention in Iran, according to a report.
The two leaders spoke by phone Saturday as Israel is on “high alert,” preparing for the possibility of U.S. military intervention in Iran, according to Reuters, citing multiple Israeli sources. A U.S. official confirmed the call to Fox News Digital but did not provide additional details.
The report comes as nationwide anti-regime demonstrations across Iran hit the two-week mark.
On Saturday, the Iranian regime triggered an internet “kill switch” in an apparent effort to conceal alleged abuses by security forces and as protests against it surged nationwide, according to a cybersecurity expert. The blackout reduced internet access to a fraction of normal levels.
KEANE WARNS IRANIAN REGIME TO TAKE TRUMP ‘DEAD SERIOUS’ ON PROTEST KILLING THREAT AMID ONGOING DEMONSTRATIONS
Secretary of State Marco Rubio holds his end-of-year press conference at the State Department in Washington, D.C., Dec. 19, 2025. (Kevin Mohatt/Reuters)
On Sunday, Iran’s parliament speaker warned that the U.S. military and Israel would be “legitimate targets” if America strikes the Islamic Republic.
Parliament Speaker Mohammad Bagher Qalibaf issued the threat as lawmakers rushed the dais in the Iranian parliament, shouting, “Death to America!” according to The Associated Press.
President Donald Trump offered support for the protesters on Saturday, writing on Truth Social that “Iran is looking at FREEDOM, perhaps like never before. The USA stands ready to help!!!”
IRANIAN MILITARY LEADER THREATENS PREEMPTIVE ATTACK AFTER TRUMP COMMENTS
In this frame grab from video obtained by the AP outside Iran, a masked demonstrator holds a picture of Iran’s Crown Prince Reza Pahlavi during a protest in Tehran, Iran, Friday, Jan. 9, 2026. (UGC via AP)
At a news conference Friday, Trump said Iran was facing mounting pressure as unrest spreads across the country.
“Iran’s in big trouble,” he said. “It looks to me that the people are taking over certain cities that nobody thought were really possible just a few weeks ago. We’re watching the situation very carefully.”
The president said the U.S. would respond forcefully if the regime resorts to mass violence.
“We’ll be hitting them very hard where it hurts. And that doesn’t mean boots on the ground, but it means hitting them very, very hard where it hurts,” he said.
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Protests in Iran intensify for the 12th day. (The National Council of Resistance of Iran)
Fox News Digital reached out to the State Department and White House for comment.
Fox News Digital’s Emma Bussey, Brie Stimson and The Associated Press contributed to this report.
World
Four killed, 20 injured in overnight Russian strikes across Ukraine
Published on
Russia fired more than 150 drones overnight into Sunday targeting close to two dozen locations across Ukraine, killing at least four people and injuring 20 more.
Ukraine’s Air Forces say they intercepted 125 drones aerially but confirmed that at least 25 strike drones struck their targets.
They added that Moscow’s latest barrage mainly targeted Kharkiv, Kherson, Zaporizhzhia and Dnipropetrovsk, all of which were targeted in Saturday’s overnight strikes as well.
Local officials in the southern region of Zaporizhzhia say the strikes targeted residential areas and energy infrastructure. More than 385,000 homes were affected by electric, gas or water outages, at a critical time as temperatures plunged to 10 degrees below Celsius.
Regional lawmakers say service was restored to most of the affected households and areas by Sunday morning, but added that emergency work was still being carried out to restore power to the remaining homes.
Ukraine’s President Volodymyr Zelenskyy accused Russia of timing their attacks with the cold peaks of winter as to maximise civilian suffering.
“They struck targets that have no military purpose whatsoever – energy infrastructure, residential buildings. They deliberately waited for freezing weather to make things worse for our people. This is deliberate, cynical Russian terror specifically against civilians,” wrote Zelenskyy in a post on X.
He also noted that this week had seen heightened Russian assault on Ukrainian cities, announcing that his country’s defence forces recorded thousands of attacks using a variety of different weapons.
“Over the course of this week, Russia launched almost 1,100 attack drones against Ukraine, more than 890 guided aerial bombs, and over 50 missiles of various types – ballistic, cruise, and even the Oreshnik medium-range ballistic missile.”
The Ukrainian leader thanked all units responsible for protecting the country and responding to attacks, and praised their tireless efforts and resilience.
He also called on allies to ensure his embattled country maintains “stable support”, in defence and diplomatic fields as coordinated dialogue efforts continue in search of peace.
Meanwhile, Russia says that one person was killed in Ukrainian strikes on the western city of Voronezh. Officials say a young woman succumbed to her wounds at an intensive care unit of a local hospital after debris from a drone fell on her house during Saturday’s attacks.
They added that at least three others were injured in the attacks which targeted more than 10 residential apartment buildings, private homes and a high school.
The city of Voronezh lies just 250 kilometres from the Ukrainian border and is home to approximately one million people. The attacks, which Kyiv have yet to confirm, came after the Kremlin’s major offensive on Ukraine in the early hours of Saturday.
Additional sources • AP
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