German Chancellor Friedrich Merz declared on Wednesday that diplomatic efforts to resolve the conflict in Ukraine have been "exhausted," reaffirming Berlin’s commitment to supporting Kiev militarily.

"We will continue to support Ukraine, despite the resistance of the left-wing parties and pro-Russian right factions here in parliament. We will continue this support. I want to tell you something even more clearly: the means of diplomacy have been exhausted," Merz said during a speech in parliament.

On another note, German Chancellor Friedrich Merz expressed "cautious optimism" over the possibility of reaching a trade agreement between the European Union and the United States, emphasizing the importance of the deal for Germany's export-driven economy.

Speaking before the Bundestag, Merz noted that intensive negotiations are ongoing between the European Commission and the US government. “I remain cautiously optimistic that we may reach a deal with the US in the coming days, or by month’s end at the latest,” he said. “This is, first of all, in the interests of our export-oriented economy.”

Merz also confirmed his direct involvement in the talks and stressed the need for unity among European partners. “Our goal is to reach a trade agreement with the United States as soon as possible, ensuring minimal customs duties for transatlantic trade,” he stated. “Achieving this goal is not easy, given the current demands of the American government. But we will succeed only through close coordination with European partners and neighbors.”

The statement comes as the US under President Donald Trump recently extended a temporary suspension of increased tariffs until August 1. Initially announced in April, the 10% base tariff was meant to apply universally, but over 75 countries opted to enter negotiations, prompting the US to delay harsher measures. Several nations, including Japan and South Korea, have been notified that higher rates may still be imposed next month.

Germany’s stance on military aid to Ukraine

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On May 26, Merz claimed that the United Kingdom, France, the United States, and now Germany had lifted restrictions on the range of weapons provided to Ukraine, enabling Kiev to strike targets inside Russian territory.

However, Vice Chancellor Lars Klingbeil, leader of the Social Democratic Party (SPD), later contradicted Merz’s remarks, stating that Berlin had not changed its position on arms deliveries.

Moscow warns against direct German involvement

Following Merz’s statements, Russian Foreign Ministry spokeswoman Maria Zakharova warned that any strike on Russian territory using Germany's Taurus missiles would be interpreted as Berlin’s direct involvement in the conflict on Kiev’s side.

Russia-Ukraine negotiations continue

Despite Merz’s emphasis on military strength, Russia and Ukraine have continued efforts toward negotiation. In June, Merz reportedly told former US President Donald Trump in a closed-door meeting that the conflict could only be resolved through a "show of force."

Nonetheless, two rounds of direct talks between Moscow and Kiev took place in Istanbul, resulting in a prisoner exchange. Moscow also returned the bodies of deceased Ukrainian servicemen to Kiev. Both sides exchanged draft memoranda focused on conflict resolution.

On July 1, Kremlin spokesman Dmitry Peskov stated that terms of the negotiations were still being coordinated. Later, Kremlin aide Yuri Ushakov confirmed that Moscow was prepared for a third round of talks

Germany’s expansive support to Ukraine

Since February 2022, Germany has become the largest European supporter of Ukraine and second globally, only to the United States, with total assistance now valued at nearly €48 billion. This support spans military aid, financial packages, humanitarian relief, refugee hosting, and reconstruction planning.

Multi-billion euro aid across all sectors

Germany’s military assistance totals €15.6 billion, including Leopard tanks, IRIS-T and Patriot systems, and more than 1,900 tactical drones. Over 450,000 artillery shells have been delivered, with further long-range weapons scheduled for deployment by 2026.

In financial terms, Berlin has provided €17.4 billion through bilateral grants and IMF-based support. Humanitarian and energy relief reach €2.2 billion, while €12.4 billion has been allocated for the integration of over 1.2 million Ukrainian refugees.

Germany co-hosted the Ukraine Recovery Conference (URC 2024) and pledged €1.3 billion toward rebuilding infrastructure. It also helped steer G7 financial aid packages, totaling nearly $69 billion over two years. Additionally, Germany has led EU sanctions enforcement and backed Ukraine’s path toward EU membership.