Germany is throwing its support behind the use of frozen Russian state assets to support Ukraine, marking a significant shift in Berlin’s position, Bloomberg reports.
The move adds momentum to European discussions on how to leverage the roughly $300 billion frozen after Russia’s full-scale invasion of Ukraine in 2022.
European governments and G7 allies have been weighing options to channel additional revenue from these funds to bolster Kyiv’s defense. So far, the EU and partners have agreed to direct interest income from the assets to Ukraine, but pressure has been growing to go further.
European Commission President Ursula von der Leyen earlier this month urged the bloc to create a “reparations loan” for Ukraine, funded by cash balances linked to the frozen Russian assets.
Germany’s support is seen as crucial, as it had previously been wary of measures that might threaten Europe’s financial hub or breach principles of state immunity.
The shift in Berlin reflects fears that declining US support under President Donald Trump could leave Europe shouldering a larger share of the aid for Ukraine. There are concerns this economic burden could also fuel the rise of the country’s far-right.
The issue will be raised at a meeting of EU finance ministers in Copenhagen this week and again at the October 23-24 EU leaders’ summit, where officials aim to reach a decision.
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