Germany to Halve Military Aid to Ukraine Despite U.S. Political Uncertainty

Germany is set to cut its military aid to Ukraine by half in 2025, raising concerns amidst potential shifts in U.S. political support. The aid is planned to drop from 8 billion euros in 2024 to 4 billion euros next year, as per a draft of the 2025 budget revealed by Reuters.

Germany's move comes as it anticipates Ukraine to meet its military needs using $50 billion in loans from frozen Russian assets, approved by the Group of Seven. Finance Minister Christian Lindner assured that Ukraine's financial future is secured through European instruments and G7 loans. This preemptive strategy aims to counteract possible funding shortages if Donald Trump returns to the White House.

Meanwhile, Germany's defence spending continues to face challenges. Despite additional funds from a special 100 billion euro military upgrade fund and regular budget increases, the defence ministry is compelled to reduce ammunition orders and cut back on procurement and research due to rising operational costs. This budgetary strain is expected to persist until 2028, when the special fund runs out, necessitating further financial adjustments.

(With inputs from agencies.)