The Chancellor wants 140 billion euros from the “frozen” Russian assets Friedrich Mertz Give Ukraine by the European Union. Member States will need to provide the relevant guarantees.

“This loan will only be repaid when Russia compensates Ukraine for the damage it caused to it.”writes Mr. Mertz in his article published in Financial Times titled “A new financial impulse for peace in Ukraine” And it calls on the EU to use the assets of the Russian Central Bank that have been frozen after the invasion of Ukraine, in order to finance the country’s war effort and to highlight the power of resistance to Russian aggression. The EU “He has to find a legal mechanism to use this money, as it is imperative to systematically and greatly increase the cost of Russia’s attack – perhaps at the October Summit that could be assigned such a plan.”The Chancellor says and adds that the EU could allocate to Ukraine an interest -free loan of about 140 billion euros without intervening property rights. “I suggest mobilizing financial resources at a height that will ensure the strength of the Ukrainian army for several years.”he points out and clarifies that funds should be disposed of exclusively for the supply of military material and not to fill gaps in the country’s budget. “Such an overall program should also help to strengthen and expand the European Defense Industry. This would serve both our collective security and European sovereignty. “writes the Chancellor.

Mr Mertz also explains that the Member States would have to guarantee the loan before securing the money from the next EU budget in 2028, while the mechanism should be agreed by a “vast majority” of Member States, implying that it is in favor of a structure that will not allow it. The tool should also be open to non -EU members who own Russian assets and wish to support Ukraine. For this reason, the Chancellor will seek, as he says, coordination with the team of seven (G7).

In a report, the British newspaper reports that among the scenarios examined in Brussels is the cash balances of the assets to be used to buy EU bonds at zero interest rate or to use a special purpose tool for managing funding arrangements, which could be allowed.

“Now is the time to apply an effective lever that will disturb the cynical game with which the Russian president buys time and bring him to the negotiating table (…) requires courage and confidence to define his own agenda instead of simply reacting to him (Vladimir)highlights Friedrich Mertz and adds that in this way “We would also send the right message to Washington, that we have to walk together on the way to a just and lasting peace.”