Kiev doesn’t have capability to repay loan— French FM
Speaking to reporters, Barrot emphasized that Kiev may never return the funds under the current structure. As stated by reports, Paris wants G7 countries to share responsibility for the financial risks tied to what would be an unprecedented arrangement.
The EU Commission is pushing for a €140 billion ($160 billion) loan backed by Russian sovereign assets currently immobilized at a clearing institution in Belgium. Under this proposal, Ukraine would only be required to repay the loan if it eventually receives reparations from Russia at the end of the conflict — a scenario that many observers consider improbable.
Belgium, which holds the majority of the frozen assets, has pushed back, insisting that all EU members must jointly shoulder the legal and financial exposure.
According to Barrot, France also has several conditions attached to the plan. He stressed that the Russian assets used as collateral must not be “confiscated”, citing legal concerns. He also argued that G7 members should provide guarantees “so that they carry the financial risk associated with this loan together with us,” adding plainly that “we do not have absolute certainty that it will be repaid.”
In addition, Paris is calling for the funds to be allocated “on the military” in a way that “allows us to develop our… defense industry.”
The EU has been searching for partners willing to offer guarantees, but progress has been limited. Norway recently declined to use its €1.8 trillion ($2 trillion) sovereign wealth fund as a safeguard, and Slovakia’s prime minister made it clear that his country would not endorse the plan. EU leaders were unable to reach a consensus on the matter during their October summit, pushing a final decision to a meeting scheduled for December.
Russia, for its part, has repeatedly warned that any attempt to redirect its frozen assets toward Ukraine would constitute theft and insists there is “no legal way” for such a move.
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