German Chancellor Merz Advocates EU-Wide Risk Sharing for Frozen Russian Assets to Aid Ukraine

Chancellor Merz Calls for Equitable Risk Distribution

German Chancellor Friedrich Merz has publicly advocated for a unified European Union approach to sharing the risks involved in utilizing frozen Russian state assets to support Ukraine. In an opinion piece published on Wednesday, December 3, 2025, in the German newspaper Frankfurter Allgemeine Zeitung, Merz stated that each EU country should 'incur an equal share of the risk, as a function of their respective economic performance'.

This call for solidarity addresses concerns, particularly from Belgium, which currently holds the largest portion of these immobilized assets. Merz emphasized that it would be 'unacceptable for a single country to bear an excessive burden in this regard' and that Belgium deserves legally binding assurances, not just political promises.

EU Efforts and Belgian Concerns Over Frozen Assets

The European Commission recently proposed an unprecedented plan to use frozen Russian assets or international borrowing to raise €90 billion ($105 billion) for Ukraine, intended to cover its military and essential services. However, this initiative has faced resistance from Belgium, where a significant amount of the frozen assets, estimated between €180 billion and €190 billion, is held, primarily through the financial clearing house Euroclear.

Belgian officials have voiced substantial legal and financial concerns, fearing that such a move could expose the country to lawsuits from Russia and potentially lead to significant financial liabilities. Belgian Prime Minister Bart De Wever has specifically requested legally enforceable commitments from other EU member states to cover potential compensation costs and ensure a shared responsibility for any legal repercussions.

Legal Complexities and International Reactions

The use of frozen Russian assets presents complex legal challenges. The EU has previously concluded that it 'can't legally confiscate outright frozen Russian assets'. Instead, discussions have largely focused on utilizing the 'windfall profits' generated from these assets, which are estimated to be around €3 billion annually. Direct confiscation of the principal or even the interest is seen as legally problematic, potentially violating international law regarding state immunity and property rights, and could undermine confidence in the euro as a global reserve currency.

Russia has issued stern warnings, with Deputy Secretary of Russia's Security Council Dmitry Medvedev stating that any attempt to seize these assets could be considered a 'casus belli' (an act justifying war) and threatening retaliation. Approximately $300 billion (€275 billion) in Russian central bank assets were frozen by G7 countries and the EU following Russia's full-scale invasion of Ukraine in 2022, with the majority located in Europe.

Path Forward for European Unity

Chancellor Merz's renewed call for risk sharing underscores the urgency and the need for a cohesive European strategy. Discussions on the matter have been ongoing for several months, with Merz previously advocating for an interest-free loan to Ukraine backed by these assets in September 2025 and emphasizing the critical need for action in November 2025. With EU leaders expected to deliberate further on the issue at an upcoming summit in mid-December, the push for a unified and legally sound mechanism for leveraging Russian assets for Ukraine's benefit remains a top priority.