Germany’s Merz backs using frozen Russian assets to support Ukraine
The German Chancellor Friedrich Merz is favorable to the use of 140 billion euros (163.5 billion dollars) of frozen Russian assets in Europe to offer an interest -free loan to Ukraine, the Financial Times said on Thursday.
“This loan would only be reimbursed once Russia has compensated Ukraine for the damage it caused during this war,” wrote Merz in the article.
The stage would release the EU member states to finance a large part of the support for Ukraine necessary in the near future itself, according to the Chancellor.
“Under the Merz proposal, the loan would first be guaranteed by the Member States before being guaranteed by using money from the next long -term budget of the EU in 2028,” the Financial Times reported.
Funds could guarantee Ukraine’s defense capacities for several years, according to the Chancellor, who said he intended to raise the proposal at the informal EU of the EU next week in Copenhagen.
“Now is the time to apply an effective lever that will disrupt the cynical game of the Russian president of the purchasing time and to bring him back to the negotiating table,” said Merz.
According to the European Commission, around 200 billion euros in assets from the Russian central bank were frozen in the European Union due to the Russian invasion of Ukraine.
The interest generated by these assets is already used to finance weapons and ammunition for Ukraine.
