Germany’s ruling coalition has frozen additional financial aid to Ukraine to save the budget: FAZ

The current budget planning of the German federal government does not provide for the allocation of additional funds to support Ukraine, which has caused concern among the opposition about the possible freezing of financial and military aid to Kyiv. About this informs Frankfurter Allgemeine Sunday newspaper.

At the request of Chancellor Olaf Scholz, new requests from the German Ministry of Defense for military aid to Ukraine will no longer be approved, although already approved supplies will continue in most cases.

The reason for this decision is the austerity measures introduced by the Chancellery and the Ministry of Finance. Finance Minister Christian Lindner informed Defense Minister Boris Pistorius about this in a letter dated August 5.

The publication notes that the ban has already entered into force, and the situation for Ukraine may worsen in the near future, as the planned military support is planned to be cut in half next year, and by 2027 it will be reduced to less than a tenth of the current amount.

From the side of the Ministry of Finance, the situation looks somewhat different. Lindner’s letter dated August 5, available to FAS, indicates that he does not expect a sudden reduction in funds for Ukraine. However, instead of funding from the federal budget, the funds are now planned to come from the frozen assets of the Russian central bank.

The ban on additional funding for military aid to Ukraine has already caused “serious conflict” in the federal government. The Chancellery wants to suspend the funding, but the Ministry of Defense, the Ministry of Foreign Affairs and the Ministry of Economy do not support this decision. Opinions differ on the role of the Treasury, with some saying it is on the Chancellor’s side, while others say the ministry is merely doing its duty, pointing to a lack of funds for new orders.