Overview

• The German chancellor outlined issuing a zero‑coupon eurobond, deposited at Belgium’s Euroclear, in exchange for the liquid portion of Russia’s frozen reserves.
• The structure is framed to keep the assets legally Russian‑owned while producing cash for Kyiv, with repayment linked to eventual war reparations.
• Roughly €220–€229 billion in Russian reserves are frozen in Europe, of which about €170–€175 billion are considered potentially usable for the scheme.
• The funds would be dedicated to purchasing military equipment, with EU capitals coordinating buys with Ukraine to bolster European defense industry capacity.
• The Commission is weighing legal options and decision rules as France expresses caution, Italy flags accounting risks for state guarantees, potential vetoes by Hungary or Slovakia are discussed, and Merz floats the EU budget as guarantor of last resort.