France is opposing the use of frozen Russian assets held in its private banks to fund a reparations loan for Ukraine, according to the Financial Times.

While supporting the loan in principle, French officials argue private banks are bound by different contractual obligations than state depositories like Belgium’s Euroclear. France holds approximately €18 billion in such private Russian assets—the second-largest stockpile in Europe. This stance highlights a key division within the EU, as the bloc debates how to leverage over €210 billion in frozen Russian sovereign assets, most of which are held at Euroclear.

The move protects French financial institutions from potential legal challenges but complicates efforts to direct Russian funds toward Ukraine’s reconstruction.