France has drawn a firm line against seizing frozen Russian assets to fund Ukraine, setting up a tense standoff with allies like the UK and US. The French position is clear: touching the roughly €200 billion in frozen Russian funds could spark financial chaos. Not exactly a small concern.
Paris just dropped a big ‘non’ on seizing Russian billions, fearing economic meltdown if they touch the cash.
French officials have been vocal about their opposition. Finance Minister Eric Lombard thinks it’s a terrible idea. Foreign Minister Jean-Noël Barrot warns of financial catastrophe. Even President Macron is saying “non.” Only former PM Gabriel Attal seems to like the plan. Awkward.
Their reasoning? For starters, it might violate international law. But more importantly for the bean counters in Paris, it could undermine trust in European financial institutions. Macron continues to insist on respecting international law regarding asset seizures to maintain stability. Nobody wants to be the one who crashed the euro. Trust issues aren’t just for relationships anymore.
Meanwhile, the interest from these frozen assets is already being put to work. The EU funneled €3 billion to Ukraine in January 2025. The G7 has committed up to $50 billion from interest alone. The UK secured a £2.26 billion loan against future interest. Not chump change.
But allies are getting impatient. The UK is pushing hard for full asset seizure. Eastern European countries like Poland, Estonia, and the Czech Republic are banging the same drum. The US is nudging Europe to do more. The pressure’s building.
France prefers a more cautious approach: use the interest, explore EU borrowing regulations, or find legal channels for war reparations. Germany shares these concerns. Shocking, right? The two European powerhouses agreeing on something.
The stakes couldn’t be higher. Russia might retaliate by seizing Western assets. Global de-dollarization could accelerate. And the precedent? Dangerous. Ukraine’s military has shown remarkable resilience against Russia, demonstrating why continued European financial support remains crucial to their defense efforts.
