German Chancellor Friedrich Merz announced the impending adoption of the European Union’s 20th sanctions package against Russia, while delivering a stark assessment of the ongoing conflict in Ukraine. Speaking Monday at a Konrad Adenauer Foundation event in Berlin, Merz stated that Russia’s war is unlikely to end until Moscow is “economically, potentially militarily, exhausted,” according to reports.
The new sanctions package is scheduled to be formally adopted on Tuesday, coinciding with the fourth anniversary of Russia’s full-scale invasion of Ukraine. Merz emphasized the need to maintain and even increase pressure on Russia, stating, “We must dry up Moscow’s war financing,” as reported by Handelsblatt.
Merz’s remarks represent a significant hardening of tone towards Russia. He accused the country, under its current leadership, of descending to “the lowest depths of barbarity.” He further asserted that Russian President Vladimir Putin will not cease his military campaign even if Ukraine were to surrender, noting observed Russian “threats and provocations” in the Baltic region, the Baltic Sea, and through hybrid attacks across Europe, including Germany.
The Chancellor’s comments come after a major policy shift regarding the use of frozen Russian assets. In a recent op-ed for the Financial Times, Merz advocated for the mobilization of $160 billion in frozen Russian assets to support Ukraine’s military resilience for “several years.” This represents a departure from Berlin’s previous reluctance, citing legal and financial concerns. Merz now urges the EU to “circumvent these problems,” according to CNN.
The proposal involves providing Ukraine with an interest-free loan, to be repaid when Russia compensates Ukraine for the damage caused by the war. Approximately $300 billion in Russian Central Bank assets are currently frozen internationally, with $229 billion held within the European Union, primarily at the Belgian clearing house, Euroclear.
While Merz is pushing for the use of frozen assets for weapons procurement, he expressed skepticism about the prospects for swift progress in U.S.-led negotiations with Russia, according to Handelsblatt. The Kremlin has already criticized the potential expropriation of Russian assets, warning that such a move “will not go unanswered.”
The German Chancellor’s call for increased sanctions and the utilization of frozen assets underscores a growing determination within the EU to bolster Ukraine’s defense capabilities. The EU is expected to formally approve the 20th sanctions package against Russia on Tuesday.
