CaliToday (16/12/2025): In a firm declaration of long-term commitment, German Chancellor Friedrich Merz has announced that Germany will allocate more than €11 billion in financial aid to Ukraine in 2026. The pledge underscores Berlin's unwavering support for Kyiv as the conflict with Russia continues and marks a crucial commitment to stabilizing Ukraine's most vulnerable sectors.
A Shield Against "Barbaric" Attacks
Chancellor Merz highlighted the humanitarian urgency of the new funding, specifically committing to ensuring energy supply for critical civilian infrastructure amidst Russia's deliberate campaign to dismantle the country's power grid.
"Amidst Russia’s barbaric efforts to destroy Ukraine’s energy system, we are committed to providing power to kindergartens, schools, and hospitals across Ukraine," Merz stated.
This strategic focus acknowledges that protecting Ukraine’s civilian life requires more than military defense; it demands resilience and guaranteed access to basic services. Berlin has already provided an additional €170 million specifically dedicated to fortifying Ukraine’s existing energy infrastructure against future attacks.
The Scale of German Support
The newly pledged 2026 funding adds to an already monumental commitment. Merz noted the immense scale of German aid provided since the full-scale invasion began in February 2022:
Military Aid: €40 billion
Civilian Support: €36 billion
Total Since Feb 2022: €76 billion (excluding the new 2026 pledge)
Seeking Innovative Financial Solutions
Beyond direct contributions, Chancellor Merz confirmed that Germany is actively working with its European and G7 partners to develop sustained, long-term financial mechanisms for Kyiv.
One of the most critical steps under discussion is the utilization of immobilized Russian assets. Merz indicated strong support for a compensation loan secured against these frozen Russian funds.
"A compensation loan derived from frozen Russian assets could provide financial support to Ukraine for at least the next two years," the Chancellor added.
This mechanism is viewed by Western leaders as a necessary step to provide massive, predictable financing without burdening the budgets of allied nations, while simultaneously ensuring that Moscow is ultimately held accountable for the financial burden of the war.
Germany’s latest commitment solidifies its position as one of Ukraine's most critical backers and reaffirms the Western alliance’s resolve to see Ukraine through the challenges of recovery and defense.