Brussels: The leaders of 27 EU member states are gathering in Brussels for a crucial European Council summit, with the controversial proposal to use frozen Russian assets to fund a loan to Ukraine expected to top the agenda.

According to Anadolu Agency, the leaders will engage in strategic discussions covering Ukraine, the next multiannual financial framework, enlargement, and the bloc's geo-economic situation. Developments in the Middle East, European defense, and migration are also on the agenda. Key topics include financial support to Ukraine, security guarantees, and diplomatic efforts to achieve peace. Leaders will evaluate progress on the EU's long-term budget for 2028-2034.

The summit is under scrutiny as leaders are expected to discuss the proposed reparations loan for Ukraine, following the EU's recent decision to 'indefinitely immobilize' Russian assets. On Tuesday, the European Parliament agreed to fast-track draft legislation for the loan, setting the stage for a vote in a January plenary session. The proposal allows the European Commission to raise funds for Ukraine by borrowing against profits and cash balances from immobilized Russian state assets.

After Tuesday's decision, parliament is set to adopt its stance on the proposal during its next plenary session, scheduled for January 19-22, before negotiations with EU member states. If EU heads of state and government back the proposal at the summit, the European Parliament could grant its final approval at the January plenary. The EU aims to use about £210 billion ($246 billion) in frozen Russian assets to support Ukraine. However, most of these assets are held by the Belgian bank Euroclear, and Belgium has raised concerns about the plan.