Berlin: Germany has taken a significant step by indicating its openness to a European Union proposal that seeks to release frozen Russian assets to support Ukraine’s war effort. The move, revealed by a government source, signals a potential shift in Berlin’s position and could reshape Europe’s financial response to the ongoing conflict.
The European Commission has outlined a plan that would transfer up to €200 billion in frozen Russian assets, currently held in a Belgian securities depository, to Ukraine. To safeguard European financial markets, these assets would be replaced with EU-backed bonds, ensuring stability while channeling crucial resources to Kyiv. Until now, EU member states have only drawn on the interest generated from these assets, seized after Russia’s full-scale invasion of Ukraine in February 2022.
For months, Berlin had been reluctant to endorse the plan, citing legal uncertainties and risks to Europe’s financial credibility. However, Finance Minister Lars Klingbeil recently signaled that Germany is now reassessing its stance. A government insider confirmed that the administration is “open to discussions on the Commission’s proposals,” suggesting that one of the strongest skeptics in the EU may be ready to soften its position.
The timing of Berlin’s shift is crucial. With U.S. policy under President Donald Trump creating uncertainty about Washington’s long-term commitment to Ukraine, European allies are under growing pressure to take greater responsibility. The EU plan to mobilize frozen Russian funds is seen as both a financial and political tool to demonstrate Europe’s resolve.
The proposal is expected to be a central topic at next week’s informal EU summit in Copenhagen, where leaders will weigh the legal, financial, and geopolitical consequences of such an unprecedented step. If approved, the move could mark a turning point in Europe’s strategy, ensuring that Moscow’s seized wealth directly contributes to sustaining Ukraine’s defense and reconstruction.
Germany’s cautious but shifting stance suggests that momentum is building within the EU for a bold financial response. The decision, however, will hinge on whether member states can reconcile legal complexities with the urgent need to support Kyiv in its fight against Russian aggression.