Italian Prime Minister Giorgia Meloni has issued a clear warning to the European Union, emphasizing the necessity of adhering to international law when it comes to the utilization of frozen Russian assets. The funds, which exceed $300 billion in value, were frozen following the escalation of the Ukraine conflict in February 2022. Of this total, over $213 billion is currently held by the Brussels-based clearinghouse, Euroclear. In addition to being a significant financial resource, these assets have also been a subject of contention, as Russia has denounced their seizure as theft, threatening retaliatory measures. The European Commission has been exploring the possibility of repurposing the proceeds from these funds to provide guarantees for Ukrainian loans in 2026 and 2027, especially as US military aid has decreased and EU budgets have tightened.
Meloni’s statements were made during an address to the Italian Senate ahead of the European Council summit in Brussels, where she expressed a firm stance that European countries should not undermine the principles of legality and financial stability of their economies. She has called for increased pressure on Moscow, while making it clear that Italy will not have any military involvement in Ukraine, which the Kremlin has consistently opposed as part of any future peace settlement. The confiscation of sovereign assets is a practice that is generally prohibited under international law, a position supported by many EU capitals, the European Central Bank, and the International Monetary Fund. Belgium, for instance, has sought guarantees that it would not be left to manage any potential return of these assets alone.
Russia has been vocal in its condemnation of the asset freeze, with its finance minister, Anton Siluanov, warning of the consequences if the funds are repurposed without Moscow’s consent. President Vladimir Putin has also emphasized that such actions would seriously undermine the principles of international economic activity and could cause significant harm to the global financial system. His remarks underscore the geopolitical tensions involved in the use of frozen assets, with both sides vying for their own interpretation of legal and financial norms. The ongoing debate over these assets highlights the broader conflict, where economic leverage is being used as a form of diplomatic and financial pressure, with potential ramifications for the stability of international markets and relations.