EU's Bold Move: Unfreezing Russian Assets for Ukrainian Aid

The German government has expressed a willingness to consider a European Union (EU) proposal aimed at redirecting substantial frozen Russian assets to support Ukraine. According to a government source, the EU's plan involves transferring as much as 200 billion euros, currently held in a Belgian depository, to Ukraine by issuing EU-backed bonds.

This proposal is expected to be a central topic at the upcoming informal EU summit in Copenhagen. Until now, only interest earned from these frozen funds, accumulated after Russia's invasion of Ukraine in February 2022, has been utilized. Concerns over the United States' commitment to Ukraine under President Donald Trump have heightened the need for European action.

Germany, a key player in the EU and significant military supporter of Ukraine, has had reservations regarding the legal implications of fully seizing these funds. However, Finance Minister Lars Klingbeil indicated a potential shift in Berlin's approach as they engage in discussions on the EU Commission's newly unveiled proposals. Meanwhile, the U.S. continues its call for Europe to assume a more substantial role in its defense responsibilities.

(With inputs from agencies.)