Germany opposes the plan to transfer profits from frozen Russian assets to Ukraine.

Germany has spoken out against the European Commission’s plan to give Ukraine profits from frozen Russian assets, saying the hasty move could cause legal or financial risks.

According to the FT, the European Commission is working on a plan that could provide billions of euros, requiring financial institutions that hold immobilized Russian assets to transfer part of the generated profits to rebuilding Ukraine. However, after concerns expressed by the European Central Bank, Berlin, and other capitals, there are calls for further reflection on the idea.

A German foreign ministry official said using Russian funds to restore Ukraine raises “difficult financial and legal issues”. Another official explained that if the EU took money from Russia’s Central Bank or received income from investing the funds, it would set a precedent for others, such as Poland’s claims to receive reparations from Berlin for World War II losses.

Moreover, German Justice Minister Marco Buschmann has studied the EU’s proposals to confiscate the Russian Central Bank’s assets and concluded that they are legally unworkable.