Under the proposal, Ukrainian President Volodymyr Zelensky would attend EU summits without voting rights, while Kyiv would also receive representation within the European Commission and non-voting seats in the European Parliament during the accession process.

The initiative, first discussed by Merz with European leaders last month, was outlined in a letter addressed to European Commission President Ursula von der Leyen and European Council President Antonio Costa.
“It is obvious that we will not be able to complete the accession process shortly, given the countless hurdles as well as the political complexities of ratification processes,” Merz wrote.

“What I envisage is a political solution that brings Ukraine substantially closer to the European Union and its core institutions immediately,” he added.
The German proposal would also extend the EU’s mutual assistance clause to Ukraine and provide Kyiv access to selected areas of the bloc’s budget framework, deepening institutional ties as the country continues to battle Russia’s invasion.

Ukraine has accelerated its push for EU membership since Russia launched its full-scale invasion in 2022, framing accession as central to its long-term economic recovery, political stability and security architecture.
Kyiv’s membership drive had faced persistent resistance from Hungary under former nationalist Prime Minister Viktor Orban, whose government repeatedly delayed progress on accession negotiations.

His replacement by political rival Peter Magyar has raised expectations among EU officials that talks could regain momentum.

Despite that shift, Merz acknowledged that full accession remained politically and procedurally distant because EU enlargement requires unanimous approval among member states and ratification through national processes.

The proposal may encounter reservations both inside the EU and in Kyiv, where officials have expressed concern that interim arrangements could dilute or indefinitely postpone full membership ambitions.
Merz sought to address those concerns directly, insisting the initiative was not intended to replace eventual accession.

“It would not be a membership light,” he wrote, while urging EU leaders to open “all negotiation clusters” with Ukraine immediately.

Ukraine’s pursuit of deeper European integration has intensified as prospects for NATO membership remain uncertain following continued opposition from the United States to Kyiv joining the military alliance in the near term.

Negotiators from the European Parliament and EU member states concluded overnight talks on measures needed to enforce the agreement reached last year between Washington and Brussels.

The trade accord, negotiated in July 2025 between Trump and European Commission President Ursula von der Leyen in Turnberry, Scotland, set tariffs on most European exports to the United States at 15 percent while requiring the EU to eliminate duties on many US imports.

Implementation had stalled for months amid political disagreements inside the bloc and concerns over Trump’s broader trade policies.Von der Leyen welcomed Wednesday’s breakthrough, saying the agreement would allow the EU to fulfill its obligations under the transatlantic trade framework.

“Together, we can ensure stable, predictable, balanced, and mutually beneficial transatlantic trade,” she said in a statement posted on social media.Trump had warned the EU it faced significantly higher tariffs if the agreement was not ratified by early July and had previously threatened to raise duties on European automobiles and trucks from 15 percent to 25 percent.

The dispute had intensified pressure on Brussels to secure stability in trade relations with Washington, its largest economic partner, with annual transatlantic trade valued at roughly 1.6 trillion euros ($1.9 trillion).

The final agreement includes safeguards allowing the European Commission to suspend favorable tariff arrangements if the United States violates the deal or targets EU businesses through discriminatory trade actions.

EU negotiators also secured provisions enabling Brussels to respond if surges in US imports threaten domestic European industries.However, lawmakers softened several earlier demands opposed by Washington, including provisions that would have required the United States to immediately remove tariffs above 15 percent on steel components before EU measures took effect.

The finalized text also removed a proposed “sunrise clause” that would have delayed implementation until Washington fully complied with all commitments.A separate “sunset clause” was extended until the end of 2029, postponing the need for renegotiation or renewal of the arrangement.

Bernd Lange, who led negotiations within parliament, said lawmakers had succeeded in securing safeguards protecting European interests.But Anna Cavazzini criticized the compromise, saying the agreement still placed the EU at a disadvantage despite helping stabilize trade tensions.

The accord comes after more than a year of transatlantic trade disputes triggered by Trump’s tariff policies on steel, aluminum, vehicles and industrial goods.

Modi’s six-day visit starts in the United Arab Emirates before continuing to the Netherlands, Sweden, Norway and Italy, with New Delhi seeking to secure energy supplies and deepen economic ties with Europe following the India-European Union free trade agreement finalized in January.

The trip comes as disruptions around the Strait of Hormuz and Gulf maritime corridors continue to pressure energy-importing economies. India, the world’s third-largest oil buyer, typically sources nearly half of its crude imports through the strategic waterway.

India’s foreign ministry said discussions in the UAE would focus on “strengthening our energy security,” including cooperation on oil and liquefied petroleum gas supplies. The Gulf nation hosts an Indian diaspora estimated at 4.5 million people and remains one of New Delhi’s key energy partners.

Analysts said the visit reflects India’s broader push to diversify strategic partnerships while positioning itself as an alternative manufacturing and technology hub amid shifting geopolitical alignments and supply-chain realignments away from China.

“The recently concluded India-EU free trade agreement has already created momentum,” former Indian ambassador Anil Wadhwa told AFP, adding that India was seeking to position itself as a “trusted economic, technological and clean energy partner.”The European leg of the tour will focus heavily on trade and investment cooperation.

Modi is scheduled to meet Dutch leaders later on Friday for talks expected to cover bilateral trade, defense cooperation, semiconductors, water management, agriculture and healthcare.India and the EU concluded a landmark free trade agreement in January, which Modi described as the “mother of all deals.” European policymakers increasingly view India, the world’s most populous country, as a critical market and strategic counterweight in Asia.

In Sweden, Modi will attend a European business leaders forum alongside Ursula von der Leyen before traveling to Oslo for an India-Nordic summit, marking the first visit by an Indian prime minister to Norway in more than four decades.

Former Indian ambassador K.C. Singh said the Gulf leg of the visit also reflected changing regional alignments following escalating Middle East tensions.“A new international environment now prevails,” Singh told AFP, citing fractures within the Gulf Cooperation Council and growing strategic competition involving Iran, Gulf states, the United States and Israel.

Modi also met Iranian Foreign Minister Abbas Araghchi in New Delhi on Thursday ahead of the trip, underlining India’s effort to maintain diplomatic engagement across rival regional blocs.Energy analysts said New Delhi could pursue agreements linked to strategic petroleum reserves and long-term LPG supply arrangements to reduce vulnerability to price shocks and shipping disruptions.

The Nordic portion of the tour is also expected to include discussions on Arctic cooperation and climate-linked shipping routes. India operates a research station on Norway’s Svalbard archipelago and has increasingly monitored the commercial and environmental implications of melting polar sea ice.

Indian lawmaker Shashi Tharoor wrote in the Indian Express that India and Nordic nations shared interests in preserving international stability “at a time when the turbulence of the Trumpian era has unsettled global norms.”

The final stop of Modi’s tour will be Italy on May 19, where he is expected to meet Prime Minister Giorgia Meloni for talks on bilateral cooperation and regional security issues.

The waiver replaces a previous 30-day authorization that expired on April 11 and permits transactions involving Russian crude and petroleum products already loaded at sea, while continuing to exclude dealings tied to Iran, Cuba and North Korea.

The move follows pressure from energy-importing countries, particularly in Asia, grappling with supply disruptions and elevated costs.A Treasury spokesperson said the decision was linked to broader efforts to stabilize markets as diplomatic engagement with Iran intensifies. “As negotiations with Iran accelerate, Treasury wants to ensure oil is available to those who need it,” the spokesperson said.

The extension marks a reversal from comments made earlier in the week by Treasury Secretary Scott Bessent, who had indicated the administration would not renew waivers covering Russian and Iranian oil. The Iranian waiver, issued on March 20, had facilitated the flow of roughly 140 million barrels into global markets, according to Bessent’s prior statements.

Global oil prices fell about 9% on Friday to around $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a critical transit route for global crude supplies. However, the conflict now entering its eighth week has already caused extensive disruption, with more than 80 oil and gas facilities in the Middle East reported damaged, according to the International Energy Agency.

Tehran has warned it could again close the strait if U.S. naval actions targeting Iranian ports continue, raising the risk of renewed supply shocks. The war has been described by the agency as the most severe disruption to global energy supply in history.

The administration’s decision also reflects domestic political pressures, as elevated fuel prices pose risks to Republican candidates ahead of the November midterm elections. U.S. officials said the issue was raised during meetings on the sidelines of G20, World Bank and International Monetary Fund gatherings in Washington, where partner countries urged continued flexibility on supply.

Trump also discussed oil markets during a recent call with Narendra Modi, whose country remains a major importer of Russian crude.The waiver has drawn criticism from lawmakers across party lines, who argue it risks undermining sanctions aimed at curbing Russia’s revenue from its war in Ukraine while also easing pressure on Iran during its confrontation with the United States.

European officials have voiced similar concerns, with Ursula von der Leyen stating that sanctions relief would be premature.Russian presidential envoy Kirill Dmitriev said the policy signaled ongoing economic and energy engagement between Washington and Moscow, adding that earlier waivers could release volumes equivalent to nearly a day of global oil output.

Analysts said the measure underscores the limited policy options available to policymakers confronting simultaneous geopolitical crises and market instability. Brett Erickson of Obsidian Risk Advisers said the damage to global energy systems may be enduring, warning that “the tools available to stabilize them are nearly exhausted.”

Speaking alongside Australian Prime Minister Anthony Albanese in Canberra, von der Leyen said the impact of the crisis was already being felt across economies through rising oil and gas prices.

“We all feel the knock-on effects on gas and oil prices on our businesses and our societies,” she said, highlighting the broader economic repercussions of prolonged instability in a region central to global energy production and transit.

Her remarks come as the Middle East conflict disrupts key supply routes and raises concerns over sustained volatility in energy markets.

The region accounts for a significant share of global oil exports, making it highly sensitive to geopolitical tensions.Von der Leyen emphasized that continued hostilities risk compounding inflationary pressures and undermining business confidence, particularly in energy-importing economies.

She urged all parties to pursue a diplomatic solution, stressing the urgency of de-escalation. “It is of utmost importance that we come to a solution that is negotiated, and this puts an end to the hostilities that we see in the Middle East,” she said.

Her comments reflect growing international concern over the broader economic fallout of the conflict, as governments and institutions monitor its impact on global trade, energy flows and financial markets.

In a landmark move blending innovation, diplomacy, and solidarity, the European Union is advancing a forward-looking financial framework to channel frozen Russian assets into Ukraine’s rebuilding and defense — setting a global precedent for responsible, future-focused economic governance.

In a bold step towards global stability and reconstruction, the European Union has unveiled a groundbreaking initiative to leverage Russia’s frozen sovereign assets for Ukraine’s defense and recovery.

In a landmark move blending innovation, diplomacy, and solidarity, the European Union is advancing a forward-looking financial framework to channel frozen Russian assets into Ukraine’s rebuilding and defense — setting a global precedent for responsible, future-focused economic governance.

The proposal, designed to balance international law with humanitarian responsibility, represents a creative model of financial diplomacy — one that reinforces Europe’s commitment to peace, resilience, and accountability.

Under the plan, the EU aims to mobilize up to €185 billion ($216 billion) from the €210 billion in Russian assets currently held in Europe. Rather than confiscating the funds — a move prohibited under international law — the initiative converts them into productive capital through carefully structured financial instruments.

This innovative approach could mark a turning point in how global powers address the aftermath of conflict without violating international norms.

The European Commission’s proposal would allow funds held by Euroclear, the Belgian central securities depository, to be invested in zero-coupon bonds issued by the Commission.

These proceeds would then finance a “Reparations Loan” to Ukraine, enabling the country to rebuild infrastructure, stabilize its economy, and invest in defense capabilities — all before Russia formally pays reparations in a future peace settlement.

This system allows Ukraine to access urgently needed resources immediately, while maintaining the principle that Russia remains liable for the damages caused by its invasion. It is, as EU officials describe, “a bridge between justice and economic realism.”

The initiative has garnered strong political backing across Europe, with leaders highlighting its pragmatic design and humanitarian purpose. European Commission President Ursula von der Leyen emphasized that the program reflects “Europe’s shared commitment to rebuilding what war has destroyed — not with vengeance, but with vision.”

Financially, the move is highly structured and risk-mitigated. The €185 billion held by Euroclear would be fully covered by EU government guarantees, ensuring stability and protecting taxpayers

In addition, the plan safeguards against premature release of frozen assets by introducing a qualified majority mechanism for sanction rollovers — preventing any single member state from blocking the process.

Experts see the proposal as a major leap in sustainable geopolitical financing, offering a model for future conflict recovery efforts. By avoiding confiscation and using advanced financial tools, the EU demonstrates that international cooperation and rule of law can go hand-in-hand with economic innovation.

The “Reparations Loan” mechanism, in particular, is being praised as a balanced solution — offering Ukraine an immediate economic lifeline while keeping Russia’s financial obligations intact.

The funds will prioritize rebuilding critical infrastructure, energy facilities, housing, and healthcare systems, while supporting Ukraine’s transition to a more resilient and self-reliant economy.

With Ukraine’s financing needs estimated at €130 billion between 2026 and 2027, this mechanism provides a timely cushion that aligns with IMF assessments and G7 commitments. Analysts predict the plan could set a new standard for multilateral responses to aggression-driven crises.

While Russia has criticized the move as “unlawful,” the EU maintains that the proposal does not constitute confiscation but a responsible reinvestment of idle funds — aligning moral duty with financial discipline.

This initiative underscores Europe’s evolving role as a leader in ethical economic governance, signaling a new era where innovation, legality, and global solidarity converge.

It also reaffirms the EU’s determination to support Ukraine not only militarily, but also structurally and economically — ensuring that reconstruction and justice go hand in hand.