New Delhi: Germany, currently the second-largest provider of aid to Ukraine, plans to significantly reduce its military assistance to Kyiv in 2025. According to a parliamentary source, the government intends to halve its support, which is expected to drop from this years 8 billion euros to 4 billion euros ($4.4 billion) in 2025. This reduction comes as the government of Chancellor Olaf Scholz shifts its strategy toward leveraging frozen Russian assets to sustain aid.The decision is part of an agreement between Chancellor Scholz, his Social Democratic Party (SPD), and Finance Minister Christian Lindner, who represents the Liberal party within the governing coalition. Rather than increasing financial aid directly, Berlin is banking on the development of a financial instrument under the G7 and European Union that would allow frozen Russian assets to be repurposed to support Ukraine.Ukraine takes center stage This strategy aligns with ongoing efforts by Ukraines allies to unlock some of the $300 billion in Russian assets frozen globally since the start of the conflict. Despite this planned reduction, the finance ministry emphasized that additional aid for Ukraine could still be considered on a case-by-case basis. Germanys move has sparked concern, especially from Ukrainian officials. Oleksii Makeiev, Ukraines ambassador to Germany, highlighted that European security relies heavily on Germanys political determination to maintain its leadership in supporting Kyiv.The 2025 budget has been the subject of heated debate within the German governments coalition, involving the SPD, Greens, and Liberals. Finance Minister Lindner has urged various ministries to make budget cuts to comply with a constitutional rule limiting state debt. The final budget is expected to be approved later this year after further discussions.
