France warming up to the idea of seizing Russian assets in Europe

PARIS — France is warming up to the possibility of seizing Russian frozen assets to help Ukraine, said an official with direct knowledge of talks within the French government and between Paris and Berlin.

The official, who was granted anonymity to speak freely on a delicate matter, said members of the French government have privately discussed seizing the assets, including with their German counterparts, and potentially using them to guarantee loans for Kyiv.

European authorities froze around €200 billion of Russian assets held in Brussels-based financial institution Euroclear after Russia’s full-scale invasion of Ukraine began in February 2022. G7 countries agreed last year to use profits coming from those assets to back a $50 billion loan to Ukraine, but ruled out using the underlying assets directly as it risks breaching international law.

French ministers have also publicly rejected the possibility for legal reasons, as those assets are the property of Russia’s central bank. Economy Minister Eric Lombard told Franceinfo that as France is not directly at war with Russia, “these assets cannot be seized as this would be contrary to international agreement.”

With U.S. President Donald Trump seemingly ready to disengage from European security, the continent is scrambling to shore up its defenses and support for Kyiv. European Commission President Ursula von der Leyen on Tuesday announced a plan to send loans of up to €150 billion to governments to help them boost military spending.

Trump’s decision to pause military aid to Ukraine and seeming nonchalance about Russia’s history of violating peace agreements have prompted renewed interest in the idea of leveraging Russian frozen assets.

Baltic and Nordic countries, Russia’s neighbors, think the money should be handed to Ukraine immediately. France, however, is only considering using those assets to guarantee more loans to support Ukraine, according to the official quoted earlier in this story.

High-level French officials have in recent days publicly hinted the €200 billion could provide Brussels and Kyiv with powerful leverage over the Kremlin in any peace negotiations, Washington-led or otherwise. The Financial Times earlier reported on talks between France, Germany and the United Kingdom to use the frozen assets as a way to get Russia to respect a peace deal. However, Macron’s office denied such discussions had taken place.

French President Emmanuel Macron said last week in Washington that the frozen assets should be “part of the negotiation at the end of the war,” while his Europe minister, Benjamin Haddad, told France 2 on Tuesday that using the assets as leverage was something the government would look into. However, like Macron and Lombard, Haddad noted the legal issues at play — and the fact that seizing the assets without clear legal authority could spook investors.

The U.K. government has backed using frozen assets to guarantee loans for Ukraine, and while Germany has opposed that option, the government of incoming Chancellor Friedrich Merz could change course. Norbert Röttgen, a senior lawmaker from Merz’s Christian Democratic Union, called for using those assets to support Kyiv.

Gregorio Sorgi and Giovanna Faggionato contributed to this report.