The plan aims to establish a legal framework to utilize Russian assets, with the goal of increasing the costs of Russia's aggression.

German Chancellor Friedrich Merz has proposed leveraging frozen Russian assets in Europe to fund a nearly 140 billion euro interest-free loan to Ukraine, contingent on Russia compensating Ukraine for war damages.

While some EU countries support the idea of confiscating Russian assets, others like Germany have expressed legal concerns, and the plan would include guarantees from EU member states, with collateral from the EU’s next long-term budget in 2028.

The initiative is part of broader EU efforts to pressure Russia, and Merz plans to present this proposal at an upcoming informal EU summit in Copenhagen, seeking broad support or a large majority approval.

Amid rising tensions, NATO has increased military readiness in Denmark following recent drone incidents, with Denmark deploying fighter jets and stationing troops on Bornholm island, amid accusations from Russia of provocations.

Recent drone sightings at Danish airports are described as a hybrid attack, prompting NATO to deploy advanced missile and drone systems, with NATO Secretary General Rutte emphasizing the seriousness of the situation.

The plan to use frozen Russian assets is expected to be a key topic at the upcoming EU summit, reflecting broader efforts to increase pressure on Russia.

Germany plans to invest around 35 billion euros by 2030 in space defense projects, including satellite systems and secure launch capabilities, citing threats from Russia and China.

This initiative aims to send a message of resilience from the EU to Moscow and to enhance Ukraine's military capacity over several years, moving beyond short-term aid.

Hungary's Prime Minister Viktor Orbán discussed energy security with US President Trump, emphasizing Hungary's reliance on Russian gas and oil amid EU plans to end Russian fossil fuel imports.

He stressed the need for a new strategic approach to change Russia's calculations, asserting that the West must take the initiative rather than just react to Putin.

The Bulgarian government announced it will suspend Russian gas transit contracts in 2024 as part of EU efforts to end Russian fossil fuel imports, transitioning to gas from Azerbaijan and LNG.

Ukraine claims to have shot down a Russian Su-34 fighter jet near Zaporizhzhia during an attack, though independent confirmation is lacking.

EU leaders are expected to discuss the Russian asset plan in Copenhagen, considering options like using cash balances to purchase EU bonds or creating a special-purpose vehicle for funding.

Merz plans to push the Russian asset proposal at the upcoming EU informal summit in Copenhagen, aiming for broad support to increase pressure on Russia and facilitate negotiations.

The Kremlin has criticized the potential expropriation of Russian assets, warning that such measures will not go unanswered.

Commentary by war reporter Paul Ronzheimer provides context and analysis of Merz's proposal, highlighting its significance.

Ongoing conflict in Ukraine has resulted in casualties, with at least five civilians killed in Donetsk and additional casualties in Kherson amid continued shelling.

The proposal could involve coordination with non-EU countries like the US, which holds frozen Russian assets, to support Ukraine.

This plan aims to use these assets as a financial resource for Ukraine amidst ongoing geopolitical tensions and economic sanctions against Russia, with discussions expected at the upcoming EU summit.

The proposal involves establishing a legal framework to utilize around $212 billion of Russian assets held at Euroclear, with the goal of increasing the costs of Russia's aggression and encouraging negotiations.

Merz's initiative marks a shift in Germany’s stance, emphasizing legal feasibility and responsibility in handling frozen assets.

The funds would be managed by EU and Ukrainian authorities to ensure military support, with Merz opposing asset confiscation due to legal and currency concerns.

NATO naval forces are participating in the 'Neptun Strike 25' exercise in the North Sea and Baltic Sea, demonstrating NATO’s commitment to maritime deterrence amid heightened Russia tensions.

The plan involves using frozen assets of the Russian Central Bank, with guarantees from EU member states, secured through the EU's multiannual financial framework starting in 2028.

Merz believes this approach could disrupt Russia's strategy of buying time and bring President Putin to the negotiating table.

A recent bipartisan US Senate bill aims to redirect Russia’s frozen assets to support Ukraine, aligning with the EU’s proposed strategy.

Merz aims to reduce the financial burden on EU countries and strengthen Ukraine’s military over several years by mobilizing these funds, which would be used strictly for weapons procurement.

NATO Secretary General Mark Rutte supports shooting down Russian drones and aircraft violating NATO airspace, aligning with US President Trump’s stance amid recent violations.

Germany has been a major supporter of Ukraine, emphasizing Merz’s strong backing for Kyiv since the conflict began.

Approximately 200 billion euros of Russian Central Bank assets are frozen within the EU, with interest earnings already used to fund Ukraine’s military supplies, and about $300 billion frozen internationally.

Most of the frozen assets within the EU are held through Euroclear, mainly in Belgium, with ongoing debates about full seizure versus use of interest earnings.

The EU has only used the interest from frozen assets so far, but some countries are calling for full seizure to increase aid to Ukraine.

The proposed loan to Ukraine would be collateralized using funds from the EU’s next long-term budget, reducing the financial burden on individual member states.