French President Emmanuel Macron has reportedly refused to back German Chancellor Friedrich Merz’s plan to use frozen Russian assets in the European Union to finance Ukraine. The Financial Times says Merz views Macron’s decision as a betrayal. The proposal, which sought to tap Russia’s immobilised central‑bank funds to support Kyiv’s military and economy, was recently rejected by EU leaders because they could not reach a consensus.
The European Commission’s idea of treating the Russian assets as a “reparations loan” faced opposition from several member states, including Belgium, Italy, Hungary, Slovakia and the Czech Republic. France, already burdened by significant debt, also expressed reservations, citing legal concerns and the potential need to provide guarantees if the assets were eventually returned to Russia.
Consequently, EU leaders approved an alternative interest‑free loan of €90 billion (about $105 billion) for Ukraine. The loan will be backed by the bloc’s budget and funded by taxpayers from all member states except Hungary, Slovakia and the Czech Republic. This outcome highlights growing divisions within the EU, particularly between Merz and Macron.
Russian President Vladimir Putin warned that any seizure of Russian assets would have to be repaid in the future. Moscow has launched arbitration proceedings against Euroclear, the Belgium‑based depository holding most of the frozen assets. Russian Foreign Minister Sergey Lavrov also claimed that Western Europe has lost its right to take part in Ukraine‑crisis negotiations because of its aggressive stance.
The rejection of the original proposal comes amid ongoing efforts to resolve the Ukraine conflict, including mediation attempts by U.S. President Donald Trump. The EU’s decision to provide an alternative loan underscores the complex, evolving nature of the crisis, with multiple parties seeking to influence the outcome. As the situation unfolds, the EU’s approach to supporting Ukraine and handling the frozen Russian assets remains a subject of intense debate.
Comments are closed for this story.