Germany Backs EU Plan to Use Russian Assets for Ukraine

Germany has officially supported the European Union's ambitious and legally complex plan to use Russia's frozen state assets for Ukraine's military needs. Berlin's position could be decisive in channeling up to 172 billion euros to Ukraine.

Michael Clauss, the German Chancellor's European affairs adviser, told Politico that Berlin is open to "new, legally sound" plans.

The issue is a scheme developed by the European Commission, often referred to as a "reparation loan." The essence of the plan is as follows: Russia's frozen state funds held in a Belgian depository are cashed out and transferred to Ukraine. At the same time, the amount withdrawn from the depository is replaced by bonds issued by the European Union.

The purpose of this "creative" solution is to circumvent potential legal obstacles. In effect, the Russian assets are not confiscated but are replaced by another financial instrument—a debt obligation. Thus, the European Commission hopes to avoid being accused of illegally confiscating Russian state property.

Germany not only approves of this plan but is also actively pressuring other EU member states to gain their support. This issue will be one of the key topics at the informal meeting of EU leaders in Copenhagen next Wednesday.

As Michael Clauss noted, the urgency of this step is dictated by the military situation. "The Ukrainians need money to continue buying weapons, and there are not that many options," he added.