Paris wants G7 nations to share the risks linked to a proposed EU \u201creparation loan,\u201d Foreign Minister Jean Noel Barrot has said<\/p>\n
Kiev might never be able to repay a proposed EU loan based on frozen Russian assets, French Foreign Minister Jean Noel Barrot told journalists on Sunday. Paris wants the G7 nations to provide financial guarantees for the unprecedented move, according to Barrot.
\nThe EU Commission is seeking to issue a \u20ac140 billion ($160 billion) loan secured against immobilized Russian sovereign assets held at the Euroclear clearing house in Belgium. Under the scheme, Ukraine would only pay it back if it receives reparations from Russia once the conflict is over \u2013 an outcome widely viewed as unlikely.
\nThe plan has faced opposition from Belgium, which holds the bulk of Russian assets at the Euroclear clearing house. The nation has demanded all EU members share the financial and legal risks of the move.
\nAccording to Barrot, France has a set of demands linked to the proposed loan as well. Russian assets used as a collateral for the loan should not be \u201cconfiscated\u201d to avoid legal issues, the minister said. G7 nations should provide guarantees for the loan alongside the EU nations \u201cso that they carry the financial risk associated with this loan together with us,\u201d he maintained, adding that \u201cwe do not have absolute certainty that it will be repaid.\u201d<\/p>\n
Read more<\/p>\n
NATO member refuses to back EU attack on Russian assets<\/p>\n
Paris also demanded the loan be spent \u201con the military\u201d in a way that \u201callows us to develop our\u2026 defense industry.\u201d\u00a0
\nThe EU has already sought to secure guarantees for the loan from various nations. Last week, Norway refused to use its \u20ac1.8 trillion ($2 trillion) sovereign wealth fund as a financial backstop for the scheme.
\nSlovak Prime Minister Robert Fico also said earlier this month that his nation would not support the plan. EU leaders failed to reach an agreement on the confiscation during a summit in October, effectively postponing a final decision until a European Council meeting in December.
\nRussia has warned that seizing its frozen assets and using them to finance Ukraine would amount to theft, and that there is \u201cno legal way\u201d for Brussels to do so.<\/p>\n","protected":false},"excerpt":{"rendered":"
Paris wants G7 nations to share the risks linked to a proposed EU \u201creparation loan,\u201d Foreign Minister Jean Noel Barrot has said Kiev might never be able to repay a…<\/p>\n","protected":false},"author":1,"featured_media":22650,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-22649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t