Germany Pushes for Release of Frozen Russian Assets to Aid Ukraine

German Chancellor Friedrich Merz is championing a bold proposition for the European Union to unfreeze up to 140 billion euros ($163.72 billion) in Russian assets. This financial maneuver aims to bolster Ukraine's defense efforts as it remains embroiled in conflict. Merz's advocacy marks Germany's first show of support at this level, potentially reshaping EU policies regarding Russian assets.

Published in a Financial Times editorial, the proposal details a mechanism for an interest-free EU loan to Ukraine. This loan, contingent upon Russia settling reparations, seeks to ensure financial assistance for Ukraine without infringing on property rights. The assets in question would remain blocked until any reparations are fulfilled, addressing previous legal and financial concerns from Germany and various EU states.

Under the proposed scheme, EU member states would initially guarantee the loan, followed by the EU's long-term budget support by 2028. "We need a new impetus to change Russia's calculations," Merz stated, advocating for strategic financial leverage to compel Russia towards negotiations. This plan, emerging amid uncertainties regarding U.S. support for Ukraine, will likely dominate discussions at the forthcoming EU summit in Copenhagen.

(With inputs from agencies.)