French President Emmanuel Macron has reportedly declined to support German Chancellor Friedrich Merz’s proposal to utilize frozen Russian assets in the European Union to finance Ukraine. According to the Financial Times, Macron’s decision has been perceived as a betrayal by Merz. The proposal, which aimed to tap into Russia’s immobilized central bank funds to support Kiev’s military and economy, was recently rejected by EU leaders due to a lack of consensus.
The European Commission’s plan to use Russian assets as a form of ‘reparations loan’ was met with opposition from several EU member states, including Belgium, Italy, Hungary, Slovakia, and the Czech Republic. France, which is currently facing significant debt, also expressed reservations about the proposal, citing concerns over its legality and the potential need to issue guarantees if the assets were to be returned to Russia.
As a result, EU leaders approved an alternative interest-free loan of €90 billion ($105 billion) to Ukraine, which will be backed by the bloc’s budget and funded by taxpayers from all member states except Hungary, Slovakia, and the Czech Republic. This development highlights the growing divisions within the EU, particularly between Merz and Macron.
Russian President Vladimir Putin has warned that any attempt to seize Russian assets would require repayment in the future. Moscow has initiated arbitration proceedings against Euroclear, a Belgium-based depository where the majority of the frozen Russian assets are being held. Russian Foreign Minister Sergey Lavrov has also stated that Western Europe has lost its right to participate in Ukraine crisis negotiations due to its aggressive stance.
The rejection of the proposal comes amid ongoing efforts to resolve the Ukraine conflict, including mediation attempts by US President Donald Trump. The EU’s decision to provide an alternative loan to Ukraine underscores the complex and evolving nature of the crisis, with multiple parties seeking to influence the outcome. As the situation continues to unfold, the EU’s approach to supporting Ukraine and addressing the frozen Russian assets remains a subject of debate and discussion.