The European Commission has proposed using the frozen funds to guarantee loans to Kiev
Italian Prime Minister Giorgia Meloni has called on the EU to increase pressure on Moscow but cautioned the bloc to respect international law in any plan to use frozen Russian assets.
Meloni made the remarks during an Italian Senate address on Wednesday ahead of the European Council summit in Brussels.
Western countries blocked an estimated $300 billion of Moscow’s funds after the escalation of the Ukraine conflict in February 2022, some €200 billion ($213 billion) of which is held by the Brussels-based clearinghouse, Euroclear. They have already tapped into the revenues generated by the assets to bankroll Kiev. Russia has described those steps as “theft” and vowed retaliation.
The European Commission has proposed using proceeds from around €210 billion in frozen assets held in the EU to guarantee loans to Ukraine in 2026 and 2027. The plan comes as US military aid declines and EU budgets tighten.
“We believe, and we are not the only ones, that it is necessary to respect international rules and the principle of legality,” Meloni said, adding that the bloc must safeguard “the financial and monetary stability of our economies and the euro area.”
She said Italian troops would not set foot in Ukraine but said it was necessary to “increase pressure on Moscow.” The Kremlin has made clear it would not accept any foreign military presence in Ukraine as part of a peace settlement.
The confiscation of sovereign assets is prohibited under international law, a rule many EU capitals, the European Central Bank, and the International Monetary Bank insist cannot be breached. Belgium has asked for guarantees that it will not be left to deal with Moscow alone if the money ever has to be returned.
Moscow has condemned the asset freeze and any attempt to repurpose the funds. Russian Finance Minister Anton Siluanov has warned that Moscow would respond in kind.
President Vladimir Putin said last month that “smarter” governments oppose the seizure of Russian assets, as “they understand that it would fundamentally undermine all principles of international economic activity and, without a doubt, cause enormous harm to the… international financial system.”
