Published by Global Banking & Finance Review®
Posted on December 16, 2025
3 min readLast updated: January 20, 2026
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Italy's ruling parties urge caution on using frozen Russian assets for Ukraine, citing financial impacts. EU's plan faces legal challenges.
By Angelo Amante and Giuseppe Fonte
ROME, Dec 16 (Reuters) - Italy's ruling parties are urging caution in the use of frozen Russian assets to support Ukraine, according to a draft parliamentary resolution, saying the impact on state finances should be carefully assessed.
The European Union wants to tap part of the roughly 210 billion euros ($246.96 billion) worth of Russian central bank assets frozen in Europe after Moscow invaded Ukraine in 2022 to back a loan for Kyiv's military and civilian needs.
Some member states including Belgium - where the Euroclear depository holding most of the total assets frozen in Europe is based - have expressed unease at the plan.
Russia's central bank has filed a lawsuit seeking damages. It has said EU plans to use its assets are illegal and it reserves the right to deploy all means to protect its interests.
RESOLUTION DUE TO FACE VOTE ON WEDNESDAY
The Italian lawmakers' document voices concerns that Rome could be forced to contribute towards damages claimed by Moscow, should any legal action be successful.
The Italian document - drafted by the ruling Brothers of Italy, League and Forza Italia parties - calls on the government "to request the European Commission to conduct a thorough examination of the legal and financial aspects of all the financing options on the table".
The draft, which needs to be finalised, is due to be voted on in parliament on Wednesday after a speech by Prime Minister Giorgia Meloni ahead of a meeting of EU leaders in Brussels.
The document says Rome "will pay particular attention to the issue of the current and future impact on public finances".
The country wants to avoid jeopardising its exit from a European infringement procedure for an excessive budget deficit next year.
Italy urged its counterparts in Europe to explore alternative options to meet Ukraine's financial needs, including a bridge loan guaranteed by EU funds, according to people familiar with the matter.
The coalition's document nonetheless vowed to offer "multidimensional support" to Ukraine and said it was important to keep high pressure on Russia to accelerate a peace process.
Divisions have emerged among the allies over providing military supplies to Ukraine, with the League party - which had ties with the Kremlin in the past - saying aid to Kyiv may contribute to fuelling corruption there.
The resolution says Italy should work with its partners to assess Ukraine's financial assistance needs for 2026–2027 and identify the most legally and financially sound way to meet them, with clear rules governing the use of funds.
($1 = 0.8503 euros)
(Reporting by Angelo Amante and Giuseppe Fonte; Editing by Alison Williams)
Financial stability is a condition where the financial system operates effectively, allowing for the smooth functioning of markets and institutions without excessive volatility or risk of failure.
An international financial institution is an organization that provides financial support and advice for economic development projects in countries. Examples include the World Bank and the International Monetary Fund.
Economic growth is the increase in the production of goods and services in an economy over a period of time, typically measured by the rise in real GDP.
Financial assistance refers to funds provided to individuals or organizations to help them meet their financial needs, often in the form of loans, grants, or subsidies.
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