TOP HEADLINES

· Russia dismissed a reported three-step peace proposal from Ukrainian President Volodymyr Zelenskyy, saying Kyiv needed to accept new "realities". Kremlin spokesman Dmitry Peskov said progress would not be possible without taking into account these realities, including Russia's capture of territories from Ukraine.

· Three civilians were killed in the Donetsk region, Regional Governor Pavlo Kyrylenko said on his Telegram channel, while in the southern Kherson region, Regional Governor Yaroslav Yanushevych reported three people were killed and 15 wounded in Russian artillery attacks.

· An official from the Russian-occupied part of Ukraine's Kherson region was wounded in a car explosion, Russian news agencies reported, citing Moscow-installed authorities. Medics from the Russian-backed authorities said the Deputy Head of the region, Vitaliy Bulyuk, survived the apparent attack. "He is wounded, his condition is stable, of moderate severity," the Interfax news agency reported.

· Ukrainian Prime Minister Denys Shmygal said the UN nuclear watchdog International Atomic Energy Agency (IAEA) had agreed to dispatch permanent teams to the country's nuclear plants, including the Russian-controlled Zaporizhzhia plant. "The missions are aimed at securing the plants and recording all attempts to externally influence them, in particular shelling by the Russian aggressor," Shmygal said in a statement on social media following a meeting in Paris with IAEA chief Rafael Grossi.

· Russia said it had not placed any heavy weapons at the Zaporizhzhia nuclear power plant. Kyiv has repeatedly accused Russian forces of using the nuclear facility, seized in the first days of the conflict, as a de facto weapons depot.

· Ukrainian President Volodymyr Zelenskyy told an international aid conference Ukraine needed emergency aid for its energy sector totalling around €800 million ($843 million). "Of course it is a very high amount, but the cost is less than the cost of a potential blackout," Zelenskyy told the gathering in Paris via video link. "I hope that decisions will be made accordingly."

· The world must "rethink nuclear safety" after Russia's seizure of the Zaporizhzhia nuclear power plant, Europe's largest, Ukrainian energy minister German Galushchenko told AFP ahead of a conference in Paris. The international gathering hosted by France aims to raise funds to repair Ukraine's damaged infrastructure as well as highlight the country's support for Kyiv in its fight against Russia. 

· ​​French President Emmanuel Macron said that an international aid conference in Paris was intended to help "the Ukrainian people to get through this winter." He said the focus was on providing short-term assistance given Russia's attempts to "sow terror" in Ukraine by "cowardly" bombing of the country's civilian infrastructure. "Very concretely, these are commitments to deliver generators, help repair infrastructure, deliver LEDs (light-emitting diodes) for lighting," he said.

· The EU has reached a deal with Hungary to unblock €18 billion ($19 billion) in financial aid to Ukraine, in return for reducing the amount of funding Budapest has seen frozen by the bloc. Hungary had been blocking key EU initiatives, including the vitally needed support for Kyiv and a minimum corporate tax plan, in a bid to pressure the bloc over its own funding row. Brussels last month recommended freezing €7.5 billion ($7.9 billion) of EU funds for Budapest, citing concerns over alleged corruption. READ MORE BELOW

· Russia is likely turning to older, less reliable artillery and rocket ammunition as its newer stocks run low for its offensive in Ukraine, a senior U.S. military official said. Moscow's supply of new ammunition is "rapidly dwindling" and would likely only last until early 2023 if its forces continue to fire at current rates, the official told journalists. This "is probably forcing them to increasingly use ammunition in what we would consider degraded conditions," the official said.

· G7 leaders agreed on key elements of a platform to coordinate financial support for Ukraine, German Chancellor Olaf Scholz said, before a summit in Paris on post-war reconstruction. "The goal is now to build this platform quickly with the participation of Ukraine, international financial institutions and other partners," Scholz said after the leaders of the club of wealthy nations held online talks.

· Russian President Vladimir Putin will not hold his annual end-of-year press conference this year, which has been dominated by Moscow's Ukraine offensive, the Kremlin said. "There will not be (a press conference) before the New Year," Kremlin spokesman Dmitry Peskov said. He added that Putin "regularly speaks to the press, including on foreign visits." 

IN DETAIL

EU strikes 'megadeal' with Hungary to unblock aid to Kyiv

The EU has reached a deal with Hungary to unblock €18 billion ($19 billion) in financial aid to Ukraine, in return for reducing the amount of funding Budapest has seen frozen by the bloc.

Hungary had been blocking key EU initiatives, including the vitally needed support for Kyiv and a minimum corporate tax plan, in a bid to pressure the bloc over its own funding row.

Brussels last month recommended freezing €7.5 billion ($7.9 billion) of EU funds for Budapest, citing concerns over alleged corruption.

It has also been holding back €5.8 billion ($6.1 billion) of post-Covid EU recovery money due to Hungary's democratic backsliding and fears over its respect for judicial independence. 

After days of haggling, EU ambassadors struck a compromise that saw Budapest greenlight the aid for Ukraine for next year and the 15 percent minimum tax. 

In return, diplomats said the other EU countries agreed to cut the amount of frozen funds to €6.3 billion ($6.6 billion) and take a step towards giving Budapest the post-COVID money. 

"Megadeal!," tweeted the Czech presidency of the EU. 

The package was set to be formally confirmed later in the week.  

The compromise with Hungary's Prime Minister Viktor Orban means the EU can make good on its pledge to keep backing Ukraine as it fights Russia's offensive.