18 Aug 2024

The Beginning Of The End - Germany To Ban All New Ukraine Military Aid

Relations between Germany and Ukraine are "about to turn ugly"

By Tyler Durden: Three days ago, in the aftermath of the WSJ report seeking to radically shift the narrative over the Nordstream sabotage, where instead of the CIA being blamed for the explosion of the critical gas pipeline from Russia to Europe, unnamed "intelligence" sources forged on with a hilarious script according to which a top Ukraine general (operating initially under the instructions of Zelensky but then going rogue wen Z got "cold feet") was responsible for coordinating the sabotage using a handful of rank amateurs who somehow managed to sneak to the bottom of the Baltic sea and conduct an unprecedented military operation, we said that - no matter the laughable veracity of the report - relations between Germany and Ukraine are "about to turn ugly", and we asked why this story is coming out just now?

We didn't have long to wait to get the answer: as German media reports, this U-turn in the narrative (which according to some meant that NATO should now unleash its full military power against.... Ukraine, which had single-handedly attacked German assets by blowing up the Nordstream) was meant to soften the blow from Germany's decision to finally cut off Ukraine's - and Zelensky's - unprecedented grift.

According to a Saturday report in the Frankfurter Allgemeine Zeitung (FAZ), the German government will stop new military aid to Ukraine as part of the ruling coalition's plan to reduce spending. The report, which cited non-public documents and emails as well as discussions with unnamed sources, goes on to note that the moratorium on new assistance - which is already in effect - will affect new requests for funding, not previously approved aid,

In a letter sent to the German defense ministry on Aug. 5, Finance Minister Christian Lindner said that future funding would no longer come from Germany's federal budget but from proceeds from frozen Russian assets, according to the German newspaper. And since we already know that recent attempts to liquidate Russian assets crashed and burned over fears of escalating Russian retaliation, this effectively means no more aid for Ukraine.

Berlin, which is Europe's main supplier of military aid to Kyiv, had previously signaled a change in course on Ukraine last month, when the governing coalition of the Social Democrats, the Greens and the Liberals adopted a preliminary deal on a draft budget for 2025. The compromise detailed plans to slash future assistance to Ukraine by half to €4 billion to fulfill other spending priorities. And, it now appears, that even this token amount is about to be cut to zero.

As we reported in June, the G7’s decision to extend a USD 50 billion loan to Ukraine, backed by immobilized Russian assets, was this summit’s most significant step forward. This loan structure reflects a typical compromise between the US and Europe. While the straightforward solution would involve seizing all of Russia’s frozen assets (estimated at USD 280 billion) to directly fund Ukraine’s war efforts, European countries – particularly France, Germany, and Belgium – aggressively shied away from this, viewing it as too aggressive and fearing Russian reciprocation. Instead, they opted for using the interest on matured assets, which amounts to only a few billion dollars per year. The first option would be a game changer, we said, "whereas the second option falls embarrassingly short."

And now Ukraine will have to be satisfied with receiving whatever meager interest seized Russian funds generate.

Meanwhile, the primary source of funding for Ukraine - the Biden family and various deep state operatives - is about to dry out, after Biden finally leaves the White House and quit politics forever in three months.

Speaking after the Cabinet approved the draft budget in mid-July, Germany FinMin Lindner said Ukraine would have to rely more on funds from "European sources" as well as the frozen Russian assets. But it's still unclear if, and when, that money will flow.

According to Politico, contentions over Ukraine aid reportedly deepened the rifts in the ruling coalition in Berlin, already tattered by weeks of internal fights over a series of issues from the budget to welfare. Green leader and Economy Minister Robert Habeck said this week he plans to run for chancellor as the Greens’ candidate in the 2025 federal election, casting doubt on the survival of the governing alliance of which he is a member.

“It’s quite obvious that this coalition has major problems finding common ground,” Habeck said regarding the recent disputes.

“The ideas are falling apart.”

Which is also why Zelensky will have no choice but to resort to ever-more-desperate and shocking provocations and diversions to keep the money flowing, as the alternative is complete devastation for Ukraine and its Western backers.

 

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