Merz backs €140bn Ukraine reparations plan from frozen Russian assets
Friedrich Merz (photo: Getty Images)
German Chancellor Friedrich Merz will propose at the upcoming European Union summit that frozen Russian assets in the West be used to provide Ukraine with a €140 billion loan, Reuters reports.
The funds are intended to help Kyiv finance its defense needs and maintain economic stability.
Merz emphasized that the EU must act decisively to show Russia that support for Ukraine will remain unwavering. He first proposed an interest-free loan secured by Russian assets at the end of September.
The goal of the initiative is not to prolong the war but to end it
"We do not want to do this in order to prolong the war, but to end it," Merz said while speaking in the Bundestag. According to him, Vladimir Putin must understand that Europe's support for Ukraine will not weaken but, on the contrary, will strengthen.
Merz stressed that the use of frozen Russian assets would send a strong signal of the EU's determination to help Ukraine while also making Moscow feel the economic consequences of its aggression.
EU summit
A meeting of the European Council will take place in Brussels on October 23, where the use of frozen Russian assets to provide Ukraine with financial assistance for the coming years will be discussed. Participants will hear from Ukrainian President Volodymyr Zelenskyy.
According to Finance Minister Sergii Marchenko, Ukraine needs $60 billion in external financing for 2026–2027.
