Paris opposes the use of frozen Russian assets in French banks – media
The French side does not support the idea of using Russian assets frozen in commercial banks in France for Kyiv's needs, the Financial Times reported on Monday.
"French officials support the idea of a reparations loan for Ukraine, but note that they oppose a scheme that includes assets held in commercial banks," the message reads.
According to the publication, Paris insists that such banks have "different contractual obligations" than the Euroclear depository.
Furthermore, the FT says that France "hid all details" about the financial institutions where Russian assets are held and how the proceeds from them are used. Paris noted that this was due to the "confidential nature" of such data.
Earlier in December, Politico reported that the European Commission had prepared a draft plan to provide Kyiv with a EUR 165 billion reparations loan using frozen Russian assets. These assets are primarily held in Belgium. According to the publication, EUR 115 billion will be used to finance Ukraine's defense industry, EUR 50 billion will cover Kyiv's budget needs, and the remaining EUR 45 billion will be used to repay the G7 loan to Ukraine.
However, Belgium opposes such proposals. Last Wednesday, Belgian Foreign Minister Maxime Prévost stated that Belgium's concerns regarding the EU's use of frozen Russian assets have gone unheeded.
"We need guarantees and risk sharing with Euroclear and Belgium. Our concerns are legitimate and justified. It is unacceptable to use these funds, leaving us alone to face financial risk," Prévost said.
Later, the FT, citing sources, reported that the European Central Bank refused to act as a financial guarantor if funds were transferred to Kyiv as part of the reparation loan to Ukraine.