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Merz backs EU plan to fund Ukraine with frozen Russian assets

Sep 25, 2025, 6:39pm EDT
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German Chancellor Friedrich Merz
Annegret Hilse/Reuters

German Chancellor Friedrich Merz backed an EU plan to use frozen Russian assets to help Ukraine, marking a major shift in Berlin’s posture.

The idea — supplying Ukraine with an interest-free loan of $164 billion to boost its military capabilities — would send a forceful message to Moscow, Merz wrote in the Financial Times. Germany has previously been reluctant to use the confiscated funds, but recent incursions of Russian jets into NATO airspace, along with unease that Washington may be disengaging from the conflict in Ukraine, have instilled a new sense of urgency in Europe.

“The German government assumes that it has already replaced the USA as the most important supporter of [Ukraine],” Die Welt wrote.

Chart showing European and US monthly aid to Ukraine since 2022.
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