Italy seeks EU approval to sell frozen Russian assets as maintenance costs soar

Rome — Italy is urging the European Union to introduce legislation allowing member states to sell frozen Russian assets, as the cost of maintaining luxury villas, superyachts and valuable works of art linked to sanctioned Russian oligarchs continues to rise.

According to sources familiar with the discussions, Rome has been pressing the European Commission and the Council of the European Union for months to establish a common legal framework that would permit the sale or auction of frozen assets. Several other member states are said to have made similar requests.

Since Russia's full scale invasion of Ukraine in 2022, Italy has frozen around €2 billion worth of Russian owned assets, including companies, real estate, yachts and art collections, in line with EU sanctions. The assets are currently managed by the Italian State Property Agency (Demanio), which is responsible for their upkeep.

Maintaining the properties has become increasingly expensive. Government estimates suggest annual costs could reach €10 million, while Reuters reported that Italy had already spent €31.7 million maintaining frozen assets during the first two years of the war.

Among the most valuable assets is the 143 metre Sailing Yacht A, seized in Trieste and attributed to Russian fertiliser billionaire Andrey Melnichenko. Also under seizure is the 65 metre Lady M, moored in Imperia and linked to steel magnate Alexey Mordashov.

The frozen estate also includes luxury villas, particularly in Sardinia's Costa Smeralda, associated with oligarch Alisher Usmanov, as well as a villa on Lake Como linked to television presenter Vladimir Solovyov, a prominent supporter of President Vladimir Putin.

Italian officials are seeking an EU regulation, rather than a directive, to avoid individual member states having to introduce their own legislation and face potential legal challenges from former owners. Several sanctioned individuals have already launched legal proceedings to recover their assets, while others have reportedly indicated they would be willing to buy them back if auctions were permitted.

One proposal under discussion would see proceeds from any sales redirected to support Ukraine, although officials acknowledge that significant legal obstacles remain.

The Court of Auditors has previously highlighted the operational difficulties involved in preserving high value assets such as luxury yachts and exclusive villas. More recent reports from the State Property Agency have described the maintenance requirements as "extraordinary" given the scale and value of the frozen assets.

The burden extends beyond property and vessels. Italy is also responsible for preserving valuable artworks held inside seized residences. Officials say many paintings require carefully controlled temperature and humidity, meaning air conditioning systems must remain operational year round to prevent damage.

Among the most notable collections are works by artists including Pablo Picasso, Claude Monet, Wassily Kandinsky, Paul Cézanne, Giorgio de Chirico, Joan Miró and Marc Chagall, highlighting the scale and value of the cultural assets now under state protection.

While ethical considerations remain part of the debate, government officials privately acknowledge that the growing financial and logistical burden of maintaining the assets has become the main driver behind Italy's request for a European solution.

PS