Chancellor Merz Pushes EU to Leverage Frozen Russian Assets for Ukraine

German Chancellor Friedrich Merz is urging the European Union to utilize up to €140 billion in frozen Russian assets to fund Ukraine's defense, a move that signifies a considerable shift in Germany's approach.

In a Financial Times editorial, Merz proposed an interest-free EU loan to support Ukraine, ensuring that the assets stay frozen until Russia compensates for the war, thus respecting property rights and alleviating existing legal and financial hesitations.

The proposal—aimed at compelling Russian President Vladimir Putin to reconsider his strategies—underscores Germany's readiness to adopt legally feasible and responsible measures, following Finance Minister Lars Klingbeil's calls for increased pressure on Russia. The plan is expected to be a focal point at the upcoming EU summit.

(With inputs from agencies.)