France Now Considers Using Frozen Russian Assets to Guarantee Loans for Ukraine

France is now considering the possibility of using frozen Russian assets to assist Ukraine, according to Politico, on March 5.

The source, speaking anonymously, said French officials have privately discussed the idea of seizing the assets, which include around €200 billion held by Brussels-based financial institution Euroclear. The conversation has also extended to their German counterparts, with the potential use of the assets to guarantee loans for Kyiv being explored.

These assets were frozen by European authorities following Russia’s full-scale invasion of Ukraine in February 2022. G7 nations had agreed last year to use profits generated from those assets to back a $50 billion loan to Ukraine, but they excluded the possibility of directly seizing the assets, citing concerns about breaching international law.

Publicly, French officials have rejected the notion of seizing the assets due to legal considerations. France’s economy Minister Eric Lombard emphasized that France is not at war with Russia and that seizing the assets would be in violation of international agreements.

However, growing concerns over European security have led to a renewed focus on the potential use of frozen Russian assets.

The possibility of using Russian assets has gained traction among Baltic and Nordic countries, which argue that the money should be immediately redirected to Ukraine. France, however, remains focused on using the frozen assets as a tool to guarantee more loans for Kyiv, according to the official.

Recently, French officials have suggested that the €200 billion could offer significant leverage over Russia in any peace negotiations. While discussions have been reported between France, Germany, and the U.K. about using the assets as leverage, France’s office denied any official talks had taken place.

French President Emmanuel Macron stated in Washington on February 24 that the frozen assets should be “part of the negotiation at the end of the war,” and his Europe minister, Benjamin Haddad, affirmed on March 4 that the government would explore the use of these assets.

Both Macron and Haddad acknowledged the legal challenges involved, warning that seizing the assets without clear authority could undermine investor confidence.

In the U.K., the government has supported the idea of using frozen assets to assist Ukraine, and while Germany has opposed the approach, incoming Chancellor Friedrich Merz’s administration could reconsider its stance. Norbert Röttgen, a senior lawmaker from Merz’s Christian Democratic Union, has advocated for using these assets to support Kyiv.

Earlier, it was reported that Ukraine’s supply of Patriot missiles could run out within weeks due to a U.S. cut in military aid.