German Chancellor Merz calls on the EU to transfer 140 billion euros of Russian assets to Ukraine.

German Chancellor Friedrich Merz has called on the European Union to use frozen Russian assets to fund Ukraine's military needs, marking a radical shift from Berlin's previously skeptical position on the issue.

Call for asset utilization

According to inkorr.com: In an article for Financial Times, Merz emphasized that such a move could open access to an interest-free loan of 140 billion euros for Kyiv and demonstrate 'resilience' in the fight against Russian aggression.

The leader of Europe's largest economy and staunchest supporter of Ukraine stressed that the bloc must find a legal mechanism to utilize the assets, as it is necessary to 'systematically and massively raise the cost of Russian aggression'. The European Commission is currently considering options to use 194 billion euros of Russian assets held in the Euroclear central securities depository in Belgium.

Change in Germany's position

Previously, EU countries, including Germany, opposed the confiscation of assets due to financial and legal risks, fearing for the trust in the euro as a reserve currency and the potential for military escalation from Russia. However, the pressure to use frozen assets is increasing, especially in light of decreased support for Ukraine from Donald Trump and his unwillingness to impose new sanctions on Moscow.

Now the German chancellor is prepared to support the idea of using Russian assets to finance Ukraine's defense needs, which could improve the country's protection against Russian pressure. The consideration of using frozen assets by the EU indicates a growing awareness of the necessity to effectively utilize these resources amid decreasing international support for Ukraine.