France and Germany may seize Russian reserves to fund Ukraine
France has intensified talks on using frozen Russian assets in Europe to financially support Ukraine. According to a Politico source familiar with negotiations within the French government, authorities are consulting with Germany on the possibility of guaranteeing loans for Kyiv using these funds.
European authorities froze €200 billion ($213 billion) in Russian assets after Russia's full-scale invasion of Ukraine in February 2022. Previously, G7 countries agreed to direct the profits from these assets toward securing a $50 billion loan for Ukraine but ruled out direct confiscation due to concerns over violating international law.
French ministers had previously dismissed the possibility of asset confiscation, citing legal risks. France's Finance Minister, Éric Lombard, argued that since France is not at war with Russia, seizing assets would contradict international agreements.
However, amid a possible shift in U.S. policy on security support for Europe, France and its allies are seeking new ways to assist Ukraine. Recent statements from President Emmanuel Macron suggest a change in approach, as he hinted that frozen Russian assets could be part of negotiations to end the war. French minister for European affairs Benjamin Haddad also noted that the government is considering using these assets as leverage.
Positions of other countries
- Baltic and Scandinavian countries are pushing for the immediate transfer of funds to Ukraine.
- The United Kingdom supports using frozen assets to finance loans for Kyiv.
- Germany currently opposes confiscation, but Chancellor Friedrich Merz may reconsider the stance after the government transition.
According to the Financial Times, France, Germany and the UK are exploring the possibility of using the assets as a tool to pressure Russia to comply with future peace agreements. However, Macron's office has denied any such talks are taking place.