LONDON, September 25. /TASS/. Germany advocates providing Ukraine with an interest-free loan of nearly €140 billion using Russian sovereign assets frozen in EU countries, German Chancellor Friedrich Merz wrote in an article for the British newspaper Financial Times.
"In my view a viable solution should now be developed whereby — without intervening in property rights — we can make available to Ukraine an interest-free loan of almost €140 billion in total. That loan would only be repaid once Russia has compensated Ukraine for the damage it has caused during this war. Until then, the Russian assets will remain frozen, as decided by the European Council," he wrote.
Merz emphasized that he will discuss this initiative with European heads of state and government at the summit in Copenhagen on October 1. He also proposed giving "the mandate to prepare this instrument in a legally secure manner" at the European Council meeting in late October. "That decision should, ideally, be unanimous — failing that, it should be adopted by the large majority of member states who are firmly committed to Ukraine," the German chancellor stated.
He added that Germany continues to take a cautious stance on "confiscating the Russian central bank’s assets that are frozen in Europe." "There are not only questions of international law to consider, but also fundamental issues concerning the euro’s role as a global reserve currency. But this must not hold us back: we must consider how, by circumventing these problems, we can make these funds available for the defence of Ukraine," Merz wrote.
Cooperation with the Group of Seven
The chancellor stressed that the allocated funds would help "secure Ukraine’s defence capabilities for several years." Merz also called on other countries to "join the instrument." In particular, he stated that he would work on this issue with other G7 members.
"For Germany, it will be important that these additional funds are solely used to finance Ukraine’s military equipment, not for general budgetary purposes. Payments should be disbursed in tranches. Member states [of the EU] and Ukraine would jointly determine which materiel is procured. In my view, such a comprehensive programme must also help to strengthen and expand the European defence industry. That would serve both our collective security and European sovereignty," Merz concluded.
Russian President Vladimir Putin previously stated that the global financial and economic order would be destroyed, and economic separatism would only intensify if the West steals frozen Russian reserves. Kremlin Spokesman Dmitry Peskov noted that Moscow would certainly respond to the theft of its assets in Europe. He emphasized that the Kremlin intends to pursue legal action against those involved in this scheme.