German Chancellor Friedrich Merz has called for the use of frozen Russian state assets to fund loans for Ukraine, urging EU Member States to swiftly address remaining objections from Belgium.
Merz originally proposed using Russian funds to support Ukraine months ago. Belgium has expressed concerns about the financial and legal implications of using these assets, many of which are held at Euroclear in Brussels.
On Wednesday, the European Commission presented draft legislation regarding the assets. Merz argued that the plan complies fully with international law and obligations.
He emphasised that the assets would remain frozen until Russia compensates Ukraine for war damages, stating, "We are not confiscating them."
According to Merz, the proposal would provide sufficient resources to cover Ukraine’s financial and military needs for the next two years and potentially longer if other G7 nations join.
He said this would strengthen Ukraine and send a clear message to Moscow that continuing the war is futile.
Merz stressed that all EU Member States must share the risks equally, based on their economic capacity. He called for politically agreed principles to be legally binding, warning against disproportionately burdening individual nations.
Belgium, feeling isolated even after the Commission’s proposal, voiced its concerns on Wednesday.
Merz acknowledged that Belgium needs more than political assurances and urged swift discussions to address these objections and finalise the legislation.
He concluded by urging EU leaders to send a clear political signal, highlighting the importance of European sovereignty.
"We cannot allow decisions about the assets of aggressors frozen under our jurisdiction and in our currency to be dictated by non-European countries," Merz said.
