Merz for unlocking Russian assets and borrowing them Ukraine

In the editorial article “Financial Times” German Chancellor Friedrich Merz on Thursday first in favor of unlocking the parts of Russian assets frozen by Western states. Until now, Berlin has opposed taking such actions.

According to Merz, the European Union should unlock up to EUR 140 billion in Russian assets and finance the war of Ukraine. These funds would be used to grant Ukraine an interest -free loan without violating Russian property rights.

The German chancellor suggested that Russian assets could be freezed until Russia pays Ukraine reparations for war damage. In this way, according to Merz, legal and financial fears would be dispelled, which previously caused the Germans and other EU countries to be afraid of the confiscation of Russian assets.

According to Merz's plan, a loan for Ukraine would be initially guaranteed by the Member States and then supported by the long -term EU budget from 2028.

“We need a new impulse to change Russia's calculations,” Merz wrote in the “FT” editorial. “It's time to apply an effective lever, which will break the cynical game of the President of Russia to gain time and force him to negotiate.”

The head of the German government emphasized that The loan would have to be repaid when Russia undertakes to pay reparations for damages caused by Ukraine during the war. Payments would be transferred to Kiev in tranches, and decisions regarding the purchase of weapons would have to be made jointly by Ukraine and EU countries.

According to “FT”, Merz's plan will probably dominate the informal EU summit in Copenhagen, which will take place next month (October 23-24). “I suggest that at the European Council meeting at the end of October, grant a mandate to prepare this instrument in a legally safe manner” – Chancellor appealed.

Western countries, as part of Russia sanctions for full -size aggression in Ukraine, were frozen by the assets of the Russian Central Bank worth over $ 300 billion. Most of them, for an amount of over EUR 210 billion, are stored by the Belgian EUROCLEAR settlement chamber.

Several EU Member States, including the Baltic States, argue to take over these assets, which argue that this would allow European support for Ukraine to finance without incurring costs by European taxpayers.

However, several other countries, including Germany and France are against the acquisition of Russian assets, just like the European Central Bank (EBC), because they are afraid of escaping capital from the EU and the destabilization of the euro.

Until now, the EU has only taken over interest on Russian assets. (PAP)

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