Germany (The COW News Digital)Germany has rejected proposals to hand over frozen Russian assets held in Europe to the United States — insisting that any seized funds must be used solely for supporting Ukraine. According to Berlin, the wealth Russia lost access to after its 2022 invasion should not be repurposed for U.S. interests or transferred outside Europe. Instead, Germany advocates for a coordinated European Union (EU) framework to channel those assets toward Ukraine’s recovery.
Under a proposal backed by German Chancellor Friedrich Merz, the EU could unlock as much as €140 billion in frozen Russian funds — not by confiscating them outright, but by issuing an interest-free EU loan secured against those assets, and repaid once Russia compensates Ukraine for war damages. The plan aims to balance legal safeguards with Ukraine’s urgent financial needs, while avoiding unilateral asset transfers to non-European actors.
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Germany’s Foreign Minister Johann Wadephul acknowledged concerns raised — especially by Belgium, which hosts the bulk of these frozen assets — over potential legal and financial liabilities. He said Berlin respects Belgium’s reservations but believes a collective EU approach can resolve them fairly.
Critics warn that seizing or reallocating sovereign funds — even if frozen — could undermine international property-rights norms and weaken confidence in the EU’s financial system. As of now, the bloc is still shaping its collective response; a formal decision is expected at the upcoming EU leaders summit.
With tensions rising between Washington and Brussels over post-war financial architecture in Europe, Germany’s opposition marks a significant pushback against U.S. ambitions to tap the European-held assets. The development underscores deep divisions within the West over how to fund Ukraine’s defence and reconstruction — and how to leverage Russia’s frozen wealth without compromising European unity or legal integrity.
