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Germany shifts stance on Russian assets: what this means for sanctions and Ukraine support


An expert discussion on Germany's policy shift regarding Russian assets, new sanctions prospects, and how the Trump factor affects Ukraine aid.

On September 17, in the online studio of the 'Tower Public Control Center', economist Ivan Ust and Valerii Klachuk discussed prospects for sanctions against Russia, the impact of Western decisions on Ukraine, and Germany's change in position regarding the use of frozen Russian assets.

Ivan Ust outlined the main reasons why these assets have not yet been transferred to Ukraine: concerns about loss of investment attractiveness, legal challenges, and Germany's stance. However, Bloomberg reported that Germany now insists on the maximal use of Russian assets to support Ukraine. This could be due to an increased role for Germany in aiding Ukraine as US support wanes.

The discussion addressed legal mechanisms, including the term "crime against all", which could legitimize asset transfers. Experts noted the historical context of Germany’s concerns: its desire to avoid setting a precedent for other countries demanding compensation.

Security policy in Europe was also discussed, particularly the need for greater independence in safeguarding its security amid declining US involvement. The Trump factor was viewed as a catalyst for a stronger European defense and a stricter sanctions approach.

The 19th sanctions package was examined: its content, possible adoption timing, and opposition from Hungary and Slovakia. Ongoing trade in Russian energy resources and measures to limit it, including controls on the resale of sanctioned goods, were considered.