Germany Plans 50% Cut in Ukraine Military Aid in 2025 Budget

Sat Aug 17 2024
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BERLIN: Germany, the second-largest contributor of aid to Ukraine, plans to cut its bilateral military assistance to Kyiv by 50% in 2025, a parliamentary source revealed to AFP on Saturday.

Instead of increasing financial aid, Chancellor Olaf Scholz’s government intends to rely on funds generated from frozen Russian assets to continue supporting Ukraine. No additional aid beyond the four billion euros ($4.4 billion) allocated in the upcoming budget is planned. This year, Germany’s aid to Ukraine totaled eight billion euros.

Germany is looking to establish a financial mechanism through the G7 and the European Union to utilize frozen Russian assets for continued support, according to a finance ministry source. The move aligns with an agreement between Scholz, of the center-left Social Democratic Party, and Finance Minister Christian Lindner.

The 2025 budget, which has been the subject of intense negotiations among the coalition parties—the FDP, the Greens, and the Social Democrats—has faced pressure to cut spending to adhere to a constitutional rule limiting state debt. The budget is still under discussion and must be finalized by the end of the year.

Efforts are ongoing among Ukraine’s allies to create a mechanism for using part of the $300 billion in frozen Russian assets to aid Kyiv in its conflict with Moscow.

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