France Raises Concerns Over EU Loan to Ukraine
According to Barrot, Paris is urging the G7 nations to provide financial assurances for this unprecedented initiative.
The European Commission is considering issuing a €140 billion ($160 billion) loan secured against immobilized Russian sovereign assets held at the Euroclear clearing house in Belgium.
Under this proposal, Ukraine would be required to repay the loan only if it receives reparations from Russia after the conflict concludes—a scenario that many experts deem unlikely.
The plan has encountered resistance from Belgium, which holds the majority of Russian assets at Euroclear. Brussels has insisted that all EU member states share the financial and legal responsibilities tied to this arrangement.
Barrot explained that France has its own conditions for the proposed loan.
He emphasized that Russian assets serving as collateral must not be “confiscated” to prevent legal complications.
He further stated that G7 countries should provide guarantees alongside EU nations “so that they carry the financial risk associated with this loan together with us,” while acknowledging that “we do not have absolute certainty that it will be repaid.”
Additionally, Paris has insisted that the loan funds be allocated “on the military” in a manner that “allows us to develop our… defense industry.”
The EU has been seeking guarantees for the loan from multiple countries.
Recently, Norway declined to utilize its €1.8 trillion ($2 trillion) sovereign wealth fund as a financial backstop for the plan, highlighting the challenges in securing international support.
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