German Chancellor Friedrich Merz has called for the European Union to mobilize $160 billion in frozen Russian assets to support Ukraine, specifically for weapons procurement, marking a significant shift in Berlin’s previously cautious stance. The proposal, outlined in an op-ed for the Financial Times, aims to bolster Ukraine’s “staying power” and compel Russia to the negotiating table, according to a report by CNN on September 25, 2025.
The move comes as Ukraine faces ongoing challenges in its defense against Russia’s invasion, now approaching its fourth year. A joint report released Monday by the World Bank, the European Commission, the Ukrainian government, and the United Nations estimates the direct damage caused by the war at nearly $200 billion – $195.1 billion to be exact – between February 24, 2022, and the end of 2025. The report projects a staggering $587.7 billion will be needed for reconstruction over the next decade, with the housing sector, transportation, and energy infrastructure suffering the most significant damage.
Previously hesitant due to legal and financial concerns, Merz now urges the EU to “circumvent these problems,” advocating for a loan to Kyiv that would be repaid once Russia provides compensation for the war’s devastation. Approximately $300 billion in Russian Central Bank assets are currently frozen internationally, with the EU holding a substantial portion – some $229 billion – largely through the Belgian clearing house, Euroclear.
Merz’s assertive stance represents a departure from the more cautious approaches of his predecessors, Olaf Scholz and Angela Merkel, who often favored a less prominent role for Germany on the international stage, according to a report by Politico.eu. He has actively engaged with EU leaders, including a recent visit to Belgium to persuade Prime Minister Bart De Wever to drop his opposition to the asset mobilization plan.
The Kremlin has consistently criticized the potential expropriation of Russian assets, warning that such a move “will not go unanswered.” Despite this opposition, Merz insists the funds should be exclusively used for weapons purchases, not for general budgetary support.
The call for increased pressure on Russia comes amid continued fighting and escalating tensions. On Monday, Ukrainian forces reported striking a Russian missile division on Crimea, while Russia reported downing 86 Ukrainian drones targeting its territory. A Russian oil pump station in the Tatarstan region was reportedly damaged in a drone attack overnight, potentially impacting the Drushba oil pipeline, a critical component of Russia’s energy infrastructure.
Further complicating the situation, Hungarian opposition to additional EU aid for Ukraine has drawn criticism from German Foreign Minister Johann Wadephul, who accused Hungary of “betraying” its own fight for freedom and European sovereignty. Hungary is currently blocking a proposed €90 billion EU loan to Kyiv and opposing the 20th package of sanctions against Russia.
Russian President Vladimir Putin, in a televised address on the Day of the Defender of the Fatherland, underscored the importance of Russia’s nuclear arsenal, stating that its development remains an “unconditional priority” for ensuring the country’s security and maintaining strategic deterrence.
Trilateral talks between Russia, Ukraine, and the United States are reportedly scheduled to resume in Geneva as early as February 26, according to a Russian news agency source, though confirmation from Kyiv and Washington remains pending.
