German chancellor says frozen Russian assets must go to Ukraine, not US

German Chancellor Friedrich Merz has asserted that Russian state assets frozen in Europe should be directed solely to aid Ukraine, firmly rejecting any suggestion that the funds could benefit the United States. Speaking to journalists in Berlin on Thursday, Merz emphasized that mobilizing these resources is critical for helping Ukraine withstand the coming winter and sustain its defense over a longer period. "This is a European matter," he stated, "and I see, economically, no way of allowing the money we mobilize to go to the US in any form."

Response to US Proposals and European Unity

The chancellor's remarks were a direct response to recent suggestions by US President Donald Trump that the immobilized Russian funds could be used to the advantage of the US government or American companies. Merz declared that ensuring the money flows to Ukraine is the unified negotiating position of the German government and represents a consensus at the European level. "There are no differences whatsoever on this point," he added.

Details of the German-Backed Loan Plan

Merz referenced a proposal he first outlined in September, which involves providing Ukraine with a substantial €140 billion ($163 billion) loan. This financial instrument would be backed by the future revenue streams from the frozen Russian assets. According to Berlin, the dual objective of the plan is to significantly strengthen Kyiv's military capabilities and to increase pressure on Moscow to come to the negotiating table.

Broader Implications for Transatlantic Relations and Türkiye

The public stance highlights a clear European desire to maintain control over a major financial tool in the Ukraine conflict and underscores potential transatlantic divergences on its use. For nations like Türkiye, which advocates for diplomatic solutions and the adherence to international law in resolving conflicts, the debate over asset seizure also raises complex legal and precedent-setting questions with significant implications for global finance and sovereignty.