FT: France endorses reparations loan idea but opposes participation of its banks in scheme

France has supported the European Commission's proposal for a reparations loan for Ukraine, but opposed the participation of French commercial banks, which hold about 18 billion euros of Russian state assets, writes Financial Times.

"French banks [...] have no desire to engage in discussions," said one of the publication's interlocutors in Paris, who is familiar with the situation with frozen assets.

France refuses to disclose even the names of banks holding Russian assets, citing banking secrecy and market-sensitive information.

According to FT sources, the bulk of the money is probably held by BNP Paribas.

Unlike the Belgian depository Euroclear, commercial banks are obliged to pay Russia interest on contracts, but according to the European Commission's plan, the EU will cover any interest that banks are obliged to pay to the Russian Central Bank.

In addition to France, about 7 billion euros of Russian funds have been frozen in commercial banks in Belgium.

• On Friday, German Chancellor Friedrich Merz and the President of the European Commission Ursula von der Leyen failed to convince belgian Prime Minister Bart de Vever to allow Ukraine to receive a reparations loan using Russian assets frozen in Belgium.
• The financing of the state budget for 2026 depends on this money.