Rome (Brussels Morning Newspaper) – Italian Prime Minister Giorgia Meloni stated on Wednesday that the European Union is considering potential initiatives involving frozen Russian assets to support Ukraine. However, any actions taken must comply with international law, she said.
The European Commission has suggested reallocating the cash reserves from frozen Russian central bank securities held in Europe to aid Ukraine in 2026 and 2027, due to decreasing U.S. military aid for Kyiv and financial difficulties within the EU.
Why does Meloni stress compliance with international law?
“We believe, and we are not the only ones, that it is necessary to respect international rules and the principle of legality,”
Meloni addressed the Italian Senate before the EU summit, which starts on Thursday.
Under international law, sovereign assets are protected from confiscation, a principle that is a clear red line for many capitals and the European Central Bank.
“(We shall) safeguard the financial and monetary stability of our economies and the euro area and ensure the sustainability of any steps that may be taken,”
Meloni stated during her address at the upper house of parliament.
How is the EU planning to use russian assets?
The Commission’s plan proposes permitting governments to utilise up to 185 billion euros – most of the 210 billion euros of Russian sovereign assets frozen in Europe – without confiscating these funds. European leaders also voiced general support on Wednesday for utilising Russian assets held in the West to extend a 140 billion euro loan to Ukraine.
Ukraine will only repay the loan after Russia provides war reparations for the damage caused since its 2022 invasion. This enables Ukraine to access the funds now instead of waiting for Moscow to pay.
What legal challenges does the EU face in reallocation?
According to reports, the primary legal issue is that, according to international law, sovereign assets cannot be seized, so the EU must find a way to respect Moscow’s claim on its central bank assets when arranging the loan.
Belgium, which holds most of the frozen assets, insists that it requires firm EU guarantees before agreeing to the plan, ensuring it won’t be left to handle Moscow alone if Russian assets are suddenly returned.
France and Luxembourg agree with that stance. European Commission President Ursula von der Leyen stated that the EU’s executive body will continue developing the plan and ensure Belgium’s concerns are taken into account. EU governments will need to guarantee the loan to Ukraine, which is intended for weapons purchase and supporting the country’s operations.
