Germany Rejects U.S. Plan for Frozen Russian Assets
Chancellor Friedrich Merz insists that Russian funds must remain under European control despite pressure from Washington.
Updated on Oct. 15, 2026 in Financial Services
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Should frozen foreign assets remain under the control of the region where they were seized?
German Chancellor Friedrich Merz has firmly stated that frozen Russian assets must remain under European authority. European delegates reportedly rejected a proposal from the United States to transfer the funds to a Washington-supervised vehicle.
Why it matters
The United States proposal aimed to utilize the immobilized funds to revive peace talks following Russia's invasion of Ukraine. However, European officials are resisting the move to shift control of the billions in assets to American oversight.
European Union nations currently hold approximately €210 billion in immobilized Russian central bank assets, with €185 billion of that total located within the Brussels-based clearinghouse Euroclear.
The players
Friedrich Merz
He is the Chancellor of Germany who recently stated that frozen Russian assets must remain under European control.
Steve Witkoff
He is a United States representative who helped pitch the proposal to transfer Russian assets to a Washington-supervised vehicle.
Jared Kushner
He is a United States representative who worked alongside Steve Witkoff to propose the transfer of Russian assets.
Euroclear
It is a Brussels-based financial services company that currently holds approximately €185 billion of the frozen Russian assets.
The details
The rejected U.S. proposal, pitched by Steve Witkoff and Jared Kushner, sought to establish a new vehicle to oversee the frozen funds. Chancellor Merz publicly confirmed the German stance against this transfer while attending meetings in Brussels.
Timeline
European Union nations first immobilised the assets in February 2022 following the invasion of Ukraine.
The Financial Times reported on the details of the United States proposal on October 14, 2026.
Chancellor Friedrich Merz issued his statement regarding the assets in Brussels on October 15, 2026.
Market Landscape
The current dispute over asset control follows the 2022 European Union immobilisation of Russian central bank assets. This standoff highlights a growing divergence between European and American strategies regarding the utilization of seized state capital.
This diplomatic impasse has no direct immediate effect on individual consumer accounts or retail banking services. However, the decision could influence long-term stability and international investment policies for major financial institutions.
The takeaway
The disagreement underscores the complex geopolitical challenges involved in leveraging sovereign assets during active conflicts. Nations must balance the desire to influence peace negotiations against established international financial regulations and central bank autonomy.
Further reading
For broader insight into global capital management, see our Financial Services coverage.
Live Poll
Should frozen foreign assets remain under the control of the region where they were seized?
