France has firmly planted its flag in opposition to seizing frozen Russian assets. The country’s stance, voiced loudly by Finance Minister Eric Lombard, puts it at odds with several European neighbors who are itching to grab the estimated 200 billion euros of Russian money sitting in European banks.
Why so hesitant? France isn’t being soft on Russia. They’re worried about something bigger. International law, for starters. Seizing sovereign assets isn’t exactly in the rulebook. It’s unprecedented. Risky. A can of worms nobody wants opened.
France’s caution isn’t pro-Russia sympathy—it’s fear of crossing legal lines that could unravel the entire financial system.
The financial implications are giving French officials nightmares. The euro’s status as a reserve currency could take a massive hit. Foreign investors might think twice before parking their cash in European banks. Who’s to say their assets won’t be next? Trust, once broken, is hard to rebuild.
Meanwhile, the UK and eastern European countries like Poland, Estonia, and the Czech Republic are pushing hard for seizure. They see a practical solution to Ukraine’s funding needs. The US is nudging Europe in this direction too. But France isn’t budging.
The alternative? Using the interest from those frozen assets instead. It’s not pocket change—about 2.5 to 3 billion euros annually. Less dramatic, sure, but also less likely to blow up in Europe’s face.
Ukraine needs cash, no question. With a Trump administration looming in the US, European support becomes even more essential. The EU has already allocated 138 billion euros, with the UK recently adding a 2.26 billion pound loan.
France isn’t against helping Ukraine. They’re just worried about the method. Financial stability isn’t sexy, but it matters. A lot. President Macron has consistently emphasized the importance of respecting international law while finding ways to support Ukraine’s defense needs.
The country recognizes Ukraine’s military has shown remarkable strength and resilience against Russian forces, proving initial expectations of a quick Russian victory wrong.
The debate has broader implications for global finance. De-dollarization could accelerate. Alternative financial systems might gain traction. The Western financial order—taken for granted for decades—could fundamentally change.
Sometimes the easiest solution isn’t the smartest. France knows it. Whether other countries will listen is another story entirely.
