Merz to discuss with EU plan to finance Ukraine from frozen Russian assets worth €140 billion - media
German Chancellor Friedrich Merz plans to convince his European colleagues to support the idea of providing Ukraine with €140 billion over the next two years for military needs from frozen Russian assets.
This was reported by Spiegel, according to Censor.NET.
Merz intends to discuss this proposal at the Eurosummits in Copenhagen on October 1-2. According to him, such an amount could significantly strengthen Ukraine's defense capabilities.
Previously, the German government had been cautious about using frozen Russian assets directly to support Ukraine due to risks to financial markets and international law issues. Until now, only the income from the assets had been used.
The proposed scheme provides that the European Commission will have access to funds in Euroclear, after which Ukraine will be granted an interest-free loan of €140 billion, divided into several tranches. To avoid actual expropriation, the loans will be secured by budget guarantees from EU member states. After the war ends, Ukraine will either receive reparations from Russia or return the funds to the EU.
Merz notes that such a model would signal the EU's unwavering support to Ukraine, strengthen the sovereignty of EU decisions, and demonstrate to Moscow that Europe is ready for bold decisions.
The discussions in Copenhagen are expected to be preliminary, with more detailed discussions taking place at the European Council meeting in Brussels in three weeks. The only obstacle to the implementation of the scheme could be problems with the extension of sanctions that ensure the freezing of assets.
