(MENAFN) French Foreign Minister Jean Noel Barrot said Sunday that Kiev might never be able to repay a proposed EU loan secured with frozen Russian assets. Paris is seeking G7 backing to provide financial guarantees for the plan, he added.

The EU Commission proposes issuing a €140 billion ($160 billion) loan using immobilized Russian sovereign assets held at Belgium’s Euroclear clearing house. Ukraine would only repay if it obtains reparations from Russia after the conflict, a scenario widely considered unlikely.

Belgium, which holds most of the Russian assets at Euroclear, has opposed the plan and demanded that all EU members share the financial and legal risks.

Barrot said France also has conditions for the loan. Russian assets used as collateral should not be “confiscated” to avoid legal complications, and G7 nations should share the financial risk with EU members. He stressed, “we do not have absolute certainty that it will be repaid.”

Paris also requires that the loan be allocated “on the military” to support the development of its defense industry.

The EU has sought guarantees from several nations. Norway last week refused to use its €1.8 trillion ($2 trillion) sovereign wealth fund as a backstop, while Slovak Prime Minister Robert Fico said his country would not support the plan. EU leaders postponed a final decision on asset confiscation at an October summit, deferring it to a December European Council meeting.

Russia has warned that using its frozen assets to fund Ukraine would be theft and claimed there is “no legal way” for Brussels to implement the plan.

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