Merz: Russia’s frozen assets in Europe to stay immobilised

German Chancellor Friedrich Merz said that Russian assets in Europe will remain frozen for an extended period, speaking at a joint press conference with Ukrainian President Volodymyr Zelenskyy. The briefing was broadcast on the German government’s website.

“Russian assets in Europe will be frozen and immobilised for a long time,” Merz said.

He explained that the decision was taken last week and is intended to ensure the long-term immobilisation of the funds.

Germany and other European Union member states agreed last week to block Russian assets indefinitely. To implement this step, they plan to rely on Article 122 of the Treaty on the Functioning of the European Union. The provision allows the EU to strip individual member states of the right to lift sanctions and, in cases of serious economic difficulties, to adopt measures by a qualified majority rather than by unanimous consent.

Merz welcomed the agreement. “We are doing this not to prolong the war, but on the contrary. We are doing this to bring this war to an end as quickly as possible,” the chancellor said. He added that the move sends a “clear signal that continuing this war is pointless for Moscow” and that Russia should not expect a weakening of support for Ukraine.

Since the autumn, EU countries have been debating the possibility of granting Kyiv a so-called “reparations” loan backed by frozen Russian assets. Germany supports the proposal, while Belgium is the main opponent, citing significant risks related to legal costs and calling for the responsibility to be shared. The majority of Russia’s frozen assets are held at the Belgian depository Euroclear. Several countries, including Italy, have backed Belgium’s position.

Another financing option previously proposed by the European Commission involved joint borrowing by EU member states. Berlin and several other European capitals opposed this approach.

The issue of providing Ukraine with a “reparations” loan is scheduled to be discussed at the EU leaders’ summit in Brussels on December 18–19. EU leaders failed to reach an agreement on the matter during talks in October.

By Tamilla Hasanova