Italy Reportedly Joins Belgium in Opposing EU’s Plan to Use Russia’s Frozen Assets for Ukraine

Italy’s reportedly joined Belgium in opposing the EU’s plan to use $246 billion of Russia’s frozen assets to support Ukraine, according to an internal document seen by Politico on December 13.

This intervention, just days before a crucial EU summit, weakens the European Commission’s push for a deal. The Commission aims to free up Russian assets held in Belgium’s Euroclear bank to assist Ukraine’s war-ravaged economy. Belgium’s government has raised concerns about being liable for repayment if Russia reclaims the funds.

Italy, along with Belgium, Malta, and Bulgaria, has called for alternative solutions, urging the EU to consider options like EU loans or joint debt issuance instead of using Russian assets. While the joint debt idea faces its own challenges, including opposition from Hungary and the potential burden on countries like Italy and France, it has gained traction as a viable alternative. However, the criticism from these countries diminishes the Commission’s chances of a successful agreement at the December 18-19 summit, according to Politico.

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War in Ukraine

European Leaders Push to Seize Russia’s Frozen Billions for Ukraine. Why Now?

Feb 21, 2025 20:22

Despite Italy’s Prime Minister Giorgia Meloni continued support for sanctions against Russia, Italy’s government faces internal divisions on the approach to Ukraine. Hard-right Deputy Prime Minister Matteo Salvini has shown support for a more Russia-friendly stance.

Additionally, the four countries expressed concerns over the EU’s use of emergency powers to indefinitely freeze Russian assets, warning of potential long-term legal, financial, and procedural consequences.

Previously, it was reported that the Central Bank of Russia has initiated legal action in a Moscow court against Euroclear for “illegal actions by the depository, causing harm,” and also over the European Commission’s plans to use the bank’s frozen assets.

The bank stated that it has filed a lawsuit “to recover the damages” caused by Euroclear’s actions in the Arbitration Court of Moscow.

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