Merz wants to use frozen Russian assets for a loan to Ukraine

German Chancellor Friedrich Merz announced that he would propose an ambitious plan at the upcoming EU summit—to use frozen Russian assets to grant Ukraine an interest-free loan of €140 billion.

According to Merz, this is not a step that would prolong the war, but rather one that would help to end it. He expects that the European Union will send a clear signal to Moscow in this way – namely, that support for Kyiv will continue and even be strengthened.

“Putin must understand that he will not outlast us,” Merz said in the Bundestag. The proposal follows on from his earlier initiative at the end of September.

The use of frozen assets has long been a controversial issue within the EU, and Merz could trigger a new debate on the legal and political aspects of such a move.

(reuters, lup)