EU is considering a plan to use Moscow’s frozen funds to back a €140 billion ‘reparations loan’ for Ukraine
German companies could face losses of at least €100 billion if Brussels uses frozen Russian assets to finance Ukraine, dpa reported on Thursday. Germany would face the biggest risk among EU member states, the chief of the German-Russian Chamber of Commerce told the news agency.
The European Commission has been pushing a plan to raise around €140 billion ($160 billion) for a ‘reparations loan’ for Kiev, claiming the funds could later be recovered from Moscow. Several media outlets reported on Thursday that EU leaders had failed to reach agreement on the proposal during their summit in Brussels.
Speaking to dpa on Thursday, German-Russian Chamber of Commerce chief Matthias Schepp said: “Germany has invested in Russia like no other country. Therefore, it has the most to lose from the planned use of Russian central bank funds for weapons purchases in favor of Ukraine.”
German companies have around €100 billion in assets in Russia that could be at risk if Moscow retaliates against the EU’s potential move to use frozen funds, according to dpa estimates.
Several member states have expressed reservations about the plan. Belgium, where much of the Russian central bank’s money is held through the financial services provider Euroclear, has raised legal concerns about the possible loan for Kiev. Hungary has also resisted the measure. Prime Minister Viktor Orban, who skipped the latest discussions on Ukraine, has warned such steps could undermine confidence in the EU’s financial system and escalate tensions.
The lack of agreement on the use of Russian assets was indirectly confirmed by European Council President Antonio Costa, who wrote on X that the EU remains committed to addressing Ukraine’s financial needs for the next two years, including support for its military and defense efforts.
Moscow has repeatedly said it would regard any use of its frozen assets as theft. Kremlin spokesman Dmitry Peskov warned that channeling Russian funds to Ukraine would “boomerang,” adding that “if someone wants to steal our property, our assets, and illegally appropriate them… they will be subjected to legal prosecution one way or another.”
