Germany is set to reduce its military aid to Ukraine by half in 2025, shifting its strategy to rely on funds generated from frozen Russian assets to continue its support for Kyiv. According to a parliamentary source, the government of Chancellor Olaf Scholz has no plans for additional aid beyond the €4 billion ($4.4 billion) allocated in next year’s budget.
In 2024, Berlin’s aid to Ukraine is expected to total €8 billion. To offset the reduction in military assistance, Germany is banking on the creation of a financial instrument within the G7 and the European Union that will utilize frozen Russian assets, according to a source from the Ministry of Finance.
The decision, reported by the Frankfurter Allgemeine Sonntagszeitung, is said to be part of an agreement between Chancellor Scholz, the Social Democratic Party (SPD), and Finance Minister Christian Lindner, a member of the junior coalition partner, the Liberal Party.
Ukraine’s ambassador to Germany, Oleksii Makeiev, expressed concern on social media, stating that “the security of Europe depends on Germany’s political will to continue to play a frontline role in supporting Ukraine.”
The 2025 budget has sparked intense debate within Germany’s coalition government, comprising the Liberals, Greens, and Social Democrats. Finance Minister Lindner has urged other ministries to cut costs in line with a constitutional rule aimed at limiting state debt. Despite the budgetary constraints, the finance ministry remains open to considering additional support for Ukraine on a case-by-case basis.
Ukraine’s allies have been working for several months on a mechanism to channel a portion of the $300 billion in frozen Russian assets worldwide to aid Kyiv in its ongoing conflict with Moscow.
