EU Commission presses Macron to back reparations loan for Ukraine using Russian assets

The European Commission aims to utilize the income from the frozen assets of the aggressor country, which is held in the central securities depository Euroclear.

Such a step would be backed by national guarantees from the EU, which would have significant implications for countries with high levels of debt, including France.

The publication notes that Paris wants to ensure that providing Ukraine with a reparations loan at Russia's expense complies with international law and does not involve the confiscation of core assets.

And also that it "provides fair risk-sharing, and that it does not weigh on our public finances," a French diplomat said.

The European Commission proposes to keep Russia's right to the assets, which it will be able to claim only in the event of the payment of war reparations. In this way, Brussels would be able to counter legal claims over the confiscation of Russian assets.

"Ukraine will also need to make commitments to ensure that these funds are shielded from corruption and that they benefit, above all, EU industries," the French diplomat added.

It is noted that the loan would be provided in tranches, depending on Ukraine's needs and the fulfillment of certain conditions, including anti-corruption efforts.

During the meeting of European leaders, Ursula von der Leyen hopes to secure the support of most of them. At the same time, in case of resistance from France, reaching an agreement may not be possible.

According to the International Monetary Fund (IMF) and expert estimates, the volume of frozen Russian assets currently exceeds $300–$350 billion. However, the exact figures are difficult to determine because some of the funds were placed in different jurisdictions.

Reuters reported that Ukraine could receive financing of 300 billion dollars without the direct confiscation of Russian funds. This amount would be directed toward defense and covering the budget deficit.