Germany Supports Using Frozen Russian Assets to Aid Ukraine amid EU Negotiations

EU member states have been engaged in months-long discussions over the use of more than 200 billion euros in frozen Russian assets to fund reparations for Ukraine amid the ongoing conflict with Russia. Chancellor Friedrich Merz of Germany has announced support for allocating these funds, including assets from the Russian Central Bank, to help Ukraine recover. Merz plans to back Belgium's demands for employing the Central Bank's frozen wealth, despite Germany initially favoring the use of 185 billion euros managed by the Belgian company Euroclear, noting only smaller assets are frozen within Germany itself.

Belgian Prime Minister Bart De Wever has voiced concerns about guaranteeing protection against potential retaliatory sanctions from Russia, particularly since Russia's Central Bank has filed a lawsuit contesting the use of these frozen funds. The European Commission aims to channel these seized assets into loans for Ukraine totaling up to 90 billion euros over the next two years, with a potential increase to 210 billion euros long term, conditional on Russia making reparations after the war.

Ukrainian President Volodymyr Zelenskyy has called for swift decisions on financing, urging EU partners to finalize arrangements by the end of the year. This timeline aligns with the scheduled upcoming EU summit in Brussels, where a decisive vote on the reparations loan is expected. Merz's proposal reflects Germany's commitment to active support for Ukraine, leveraging frozen Russian assets held domestically and across the EU.

This concerted EU effort marks a significant step in transforming frozen Russian wealth into tangible support for Ukraine's financial needs amid the conflict, with careful attention to political, legal, and security considerations raised by member states such as Belgium. The discussions underscore the complex balance between holding Russia accountable and protecting EU interests against potential repercussions from Moscow.