Ukraine War: Merz wants to use Russian fortune for Ukraine credit

Chancellor Friedrich Merz wants to provide Ukraine with the help of the Russian central bank’s assets frozen in Europe with an interest -free loan of almost 140 billion euros. “This loan would only be repaid if Russia has compensated Ukraine for the damage caused,” Merz writes in a contribution to the “Financial Times”. With the money, Ukraine is to be strengthened militarily for the further defense against Russia.

“Unquible signal of resistance”

The EU has undertaken to assist Ukraine as long as necessary, Merz writes as a reason. “I am convinced that it is now time to infer this political promise with an instrument that sends an unmistakable signal of resistance to Moscow.” In recent years, one has only driven on sight. “Now I am advocating to mobilize funds to an extent that secures the military perseverance of Ukraine for several years.”

National households would be relieved

If the Merz plan was realized, the EU countries would no longer have to finance a large part of the necessary support for Ukraine from their own households. Instead, they would only have to make guarantees in the event that the frozen Russian funds must be released unexpectedly.

Merz writes: “For this comprehensive help, it will require household guarantees of the Member States.” These bilateral guarantees should be replaced by securing the EU’s multi -year financial framework as soon as the new household framework is available 2028. The funds to be mobilized would protect Ukraine’s defense ability for several years. The Chancellor wants to address his proposal next week at the informal EU summit in Copenhagen.

Merz: “Cynical time game” end Putin

“We need a new impulse to change Russia’s calculation,” writes Merz. “Now we have to start an effective lever to thwart the Russian President’s cynical game and force him to the negotiating table. This needs the courage and self -confidence to set our own agenda instead of just reacting to his.”

At the same time, he wanted to give “the brave Ukrainians new hope”. “We also send the right message to Washington: We have to go the way to a fair and permanent peace together.”

It’s about 200 billion euros

The use of Russian assets for the military support of Ukraine in defense against Russia has been discussed for months. It is about 200 billion euros, which are largely kept by the EuroClear financial institution based in Brussels.

Using the Russian central bank money directly by an expropriation decision is skeptically viewed by many in the EU – including Germany. Legal concerns, possible damage to the financial location of Europe and probable retaliation measures are the reason. Moscow had already warned the EU in 2023 to confiscate the property of the Russian state or Russian citizen.

For some time, in view of the obstacles, looking for others because of the use of the assets. EU Commission President Ursula von der Leyen has already made an advance. Around two weeks ago, she said in a speech that a new solution was urgently needed to finance Ukrainian war efforts based on the frozen Russian assets. She suggested that Ukraine, based on the liquid shares, to grant a reparation loan. The assets themselves should remain unaffected.

In advance, also in German self -interest

The fact that Merz is now also making a move is also in German self -interest. Germany is now quite alone in the front row when financing Ukraine. The Federal Government assumes that the United States has already been replaced as the most important supporter of the country attacked by Russia to date. Since other large European countries such as France and Great Britain are far less ready for payment, it is feared in Berlin that your own burden will soon become too great and that acceptance among the population is decreasing for help.

Klingbeil: “We need maximum pressure on Putin”

Finance Minister Lars Klingbeil also emphasized that one was now ready to break new ground. “We need maximum pressure on Putin so that he finally ends his brutal war against Ukraine. The killing must have an end,” said the Vice Chancellor. “We have to further strengthen Ukraine’s defense ability and secure it for years. And if it is about reconstruction, Putin will have to pay for the destruction by his war.”