Bloomberg: Germany backs using frozen Russian assets to aid Ukraine

Germany has shifted its stance and now supports using frozen Russian sovereign assets to aid Ukraine, Bloomberg has reported, citing sources.

“Berlin’s shift comes amid concern that if US support under Trump wanes, the burden of backing Ukraine would fall heavily on Europe’s largest economy, which could further fuel the rise of Germany’s far right,” the report said.

Germany, which had long been cautious about protecting its financial hub and upholding the principle of sovereign immunity, is now actively backing the most effective use of profits from frozen Russian assets, according to the news agency’s sources.

Bloomberg said that European Union (EU) finance ministers will discuss the issue at a meeting in Copenhagen this week, followed by EU leaders next month.

European governments and their G7 allies are also weighing broader use of frozen Russian assets to generate additional funding for Ukraine, the sources said.

Most of the roughly $300 billion in frozen Russian assets are held in Europe. Earlier this month, European Commission President Ursula von der Leyen said the EU must find new ways to make Russia pay for the war it is waging.

It’s not entirely clear how much of the frozen Russian sovereign assets have already been disbursed or used to assist Ukraine 

However, the G7 countries have committed to a $50 billion loan Ukraine with those assets and the U.S. as of December 2024 disbursed its share of $20 billion of that amount to the war-torn country via the Treasury Department.