German Chancellor Friedrich Merz plans to comply with Belgium’s request to make frozen Russian assets in Germany available to support Ukraine, diplomatic sources told German news agency DPA on Thursday.
European leaders are currently meeting in Brussels to decide on funding for Ukraine over the next two years.
One proposal under discussion involves providing Ukraine with a repair loan, backed by frozen Russian assets in the EU, particularly those held in Belgium by Euroclear due to European sanctions on Moscow.
The European Commission has proposed a €90 billion loan to Ukraine for 2026 and 2027.
Germany had previously argued that the €185 billion in sovereign assets of Russia’s Central Bank frozen at Euroclear should be prioritised for securing the loan, claiming that only a few hundred million euros were frozen in Germany.
However, Belgium has urged other countries holding Russian assets to join the funding mechanism to reduce its exposure to potential Russian retaliatory measures.
Aside from Belgium, Russian assets are frozen in Germany, France, Sweden, Cyprus, and Luxembourg, with most of the usable funds reportedly blocked in France, according to the Commission.
