- The German administration appears unwilling to provide any extra financial assistance to Ukraine.
According to a news outlet, the German administration won't provide any extra financial assistance to Ukraine. As per "Frankfurter Allgemeine Sonntagszeitung" (FAS), the existing budget plan doesn't have enough funds for this purpose. Although existing resources are still being distributed, further requests from the Defense Ministry won't be granted, according to the report, at the request of Chancellor Olaf Scholz (SPD).
Lindner talks to Pistorius about no more funds for Ukraine
According to documents, emails, and conversations in various German government buildings and parliament, Finance Minister Christian Lindner (FDP) wrote a letter to Defense Minister Boris Pistorius (SPD) on August 5, stating that "new initiatives" could only be undertaken if funding was secured in the budget plans for this and the following years. It's crucial to stick within the allocated limits.
The German government chose not to respond to the report. A government spokesperson informed the AFP news agency that no statement was made regarding the report's accuracy. In principle, "Germany remains a strong ally of Ukraine and is the biggest financial, economic, and military supporter of Ukraine in Europe," the spokesperson said.
Funds for this year are already planned
For this year, around eight billion euros have been set aside for Ukraine. The tentative budget limit for the next year is four billion euros, and it's reportedly already overallocated.
The Budget Committee of the German Bundestag confirmed the cancellation of additional support payments, according to FAS. The SPD's defense policy expert, Andreas Schwarz, told the newspaper that "no new orders are being triggered for Ukraine at the moment because they are no longer being funded."
The CDU's budget politician, Ingo Gädechens, also confirmed the restriction of Ukraine aid: "From today on, Olaf Scholz and his coalition are freezing the financial and, consequently, military support for Ukraine."
Ministry of Defense initially declined to comment
The Ministry of Defense and the Federal Ministry of Finance (BMF) initially refused to comment on the report. However, BMF sources mentioned on Friday evening that "all decisions regarding supporting Ukraine are made in close coordination with the Federal Chancellery."
The German government is collaborating "within the G7 states and the EU, in particular, to establish a financing instrument for Ukraine in the near future for approximately 50 billion dollars using frozen Russian assets." "The bilateral German aid remains at its highest level, but relies on the effectiveness of this instrument," BMF sources added.
The government spokesperson also highlighted the use of frozen Russian assets – so-called "windfall profits" – in this context. She stressed that, in addition to this, the G7 had agreed at their summit in Italy in June to provide Ukraine with an additional financial aid package of around 50 billion dollars, using the so-called "windfall profits" from immobilized Russian central bank assets. This financial aid will be tailored to Ukraine's needs in the areas of military, budget, and reconstruction.
The Federal Ministry of Defense referred the AFP's inquiry to the Chancellery and the Ministry of Finance.
- Despite the German administration not planning to provide additional financial assistance to Ukraine due to budget constraints, the Federal Government continues to maintain its position as a strong ally and the largest financial, economic, and military supporter of Ukraine in Europe.
- The Budget Committee of the German Bundestag, following the Federal government's decision, confirmed the cancellation of additional support payments for Ukraine, noting that no new orders are being triggered due to funding limitations.
