Why Germany may reduce military aid to Ukraine and how it sparked criticism?

“Germany halts military aid to Ukraine”. A number of media outlets published similar headlines, but they are misleading or hyperbolic.

In fact, there is no decision in Germany on stopping aid to Ukraine. However, the ongoing budgetary debate in the Bundestag has sowed doubt about the volume of German support for Kyiv.

On Saturday, the Frankfurter Allgemeine Sonntagszeitung reported on a letter from Finance Minister Christian Lindner to Defense Minister Boris Pistorius and Foreign Minister Annalena Baerbock.

The letter stated that Germany would not be able to finance additional military aid to Ukraine beyond what has already been planned.

Earlier, Berlin planned to allocate approximately 4 billion euros for military assistance this year and another 4 billion euros next year. It’s anticipated that Ukraine will receive this aid as scheduled.

However, these funds have already been mostly allocated and contracted, while the situation on the battlefield in Ukraine is developing unpredictably, and Kyiv needs urgent, additional assistance.

Thus, Defense Minister Boris Pistorius, who defends the position of meeting Ukraine’s urgent needs, is looking for solutions. And planning aid to Ukraine in the coming years is a bigger issue.

With each passing year, it gradually melts away. Specifically, Berlin plans to allocate €4 billion for 2025, €3 billion for 2026, and only €0.5 billion for 2027 and 2028.

The aid reduction was primarily due to the expectation of a gradual decrease in the intensity of the Russia-Ukraine war. Secondly, the ruling coalition aims to allocate more funds for social spending before the 2025 parliamentary elections.

As a result, German politicians had to make spending cuts, and for the first time since the start of the full-scale war, the dispute touched on military aid to Ukraine.

However, Kyiv will have access to a 50-billion-dollar loan as early as next year, with the Russian central bank’s frozen assets serving as the payment source. However, the mechanism for disbursing funds from Russian frozen assets has not yet been implemented.

Therefore, for some time, Germany’s assistance to Kyiv may be limited. The stock market has reacted to this, with shares of German arms production companies falling. 

Since Russia’s full-scale invasion of Ukraine, Germany has dramatically increased its military assistance to Kyiv, providing air defense systems, thousands of artillery shells, and armored vehicles. Germany has become the second largest donor of financial and military support to Kyiv after the United States. Ukraine has repeatedly expressed its gratitude and emphasized that Berlin’s support is extremely important. 

Reports of a potential limitation of support in Ukraine met with a restrained reaction. The Ukrainian Ministry of Foreign Affairs said that the budget process is still in progress, and the approval of the 2025 budget will reveal the final volume of German aid to Ukraine.

In Germany, however, the reaction was sharp. Both the opposition and the ruling coalition began to warn against potentially limiting military support for Kyiv.

Michael Roth, chairman of the Bundestag’s foreign affairs committee and a member of Scholz’s party, called it a “fatal signal” if future federal budgets do not include further funds for new military aid to Ukraine. 

Sara Nanni, who is in charge of defense in the Green Party, member of the coalition, noted that Germany’s security depends on developments in Ukraine. 

The leader of the largest opposition party, the CDU, Friedrich Merz, stated that “the federal government is obviously no longer able to do what is necessary for Ukraine in 2025 and especially in 2026 and 2027.” The CDU’s MP, responsible for defense policy, Roderich Kiesewetter, was even more critical: “This effectively implies the abandonment of Ukraine,” he commented on the news.

After a wave of criticism, Berlin tried to calm the situation on Monday. The German government stated that German military aid to Ukraine would not be suspended.

German Chancellor Olaf Scholz, amid media reports about reducing aid to Ukraine, assured that Germany would continue to support Ukraine, including through a €50 billion loan from the Group of Seven.

The German government, assessing all the risks, may still prevent interruptions in the supply of weapons to Ukraine to fight back Russian war aggression. Given the significant share of German aid, such interruptions will definitely affect the frontline and allow Russian invaders to seize new territories.

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