Russia's Foreign Assets

Italian Prime Minister Giorgia Meloni is facing a critical decision over Russia’s frozen assets. The funds, seized after Moscow’s invasion of Ukraine, could be used to support Kyiv—but Meloni has resisted the move. Her stance now puts her at the centre of a growing divide between Europe and the US under Donald Trump.

Meloni’s foreign policy has long balanced competing priorities. She upheld European treaties while maintaining ties with figures like Hungary’s Viktor Orbán. At the same time, she supported NATO and Europe’s position on Ukraine. But recent pressure over Russia’s frozen assets has forced her to take a clearer position.

She argues that using the assets lacks a 'solid legal basis' and risks damaging the euro’s reputation. This hesitation aligns her with Hungary, the Czech Republic, and Slovakia—countries also reluctant to redirect the funds. Her delay tactic had relied on Trump quickly resolving the Ukraine conflict, but the issue has now dragged on.

Inside Italy, Meloni finds backing from Matteo Salvini, leader of the far-right Lega party. A known sympathiser of Vladimir Putin, Salvini has openly supported Trump’s agenda. Their shared resistance to using Russia’s assets further ties Meloni to the US president’s stance.

Trump’s December 2025 statements reinforced this connection. Public remarks and diplomatic signals showed a close alignment between the two leaders on Ukraine. Now, Meloni must navigate between her far-right allies and Europe’s expectations.

The dispute over Russia’s frozen assets leaves Meloni with a difficult choice. She must either break from her far-right supporters or risk straining relations with Europe. Her decision will shape Italy’s role in the ongoing conflict and its ties with both the US and the EU.