Russia’s ambassador to Italy has issued a stark warning to Rome against taking part in European plans to use frozen Russian assets to support Ukraine, describing the proposal as “the theft of the century” and threatening swift retaliation if it goes ahead.
In a statement published on the Russian embassy’s Telegram channel, Alexei Paramonov said any Italian involvement in the plan would “substantially undermine, for many years to come, the very possibility of restoring economic and trade cooperation with Russia.” He warned that “any unauthorized conduct involving frozen Russian reserves will be characterized by the Russian side as theft, regardless of the pseudo-legal maneuvers implemented by the European Commission, which, by definition, are null and void under international and contractual law.”
Paramonov added that Russia would “immediately initiate a mechanism of countermeasures aimed at compensating for the losses caused by such hostile conduct, with similar damage to those who have undertaken such conduct.” He urged European countries, and Italy in particular, to “stop and reflect” on the consequences, saying they “will be very serious.” Among them, he listed a potential loss of confidence “in the Western financial system, and therefore also in the euro,” as well as a worsening of Europe’s economic climate.
The ambassador, who has previously accused Italy of “Russophobia” and “Ukrophilia,” said he hoped Rome would “demonstrate common sense” and make decisions “based on the interests of its own citizens.”
“Bureaucrats in Europe are increasingly eager to dip into other people’s pockets and solve their own problems with frozen Russian assets,” he added in a post cited by Il Giornale newspaper.
The warning comes as the European Union considers expanding its use of Russian central bank reserves frozen since the start of the war. Around $300 to $350 billion of Russian assets have been immobilised in Western jurisdictions, roughly half of the country’s total reserves at the time.
So far, the EU has limited itself to using interest from the frozen funds to repay a $50 billion loan to Ukraine, but falling returns are prompting calls for more drastic steps. Officials are now discussing a plan to replace the Russian assets with zero-coupon bonds issued by the European Commission, with repayment only once Ukraine receives reparations from Moscow.
Financial institutions and some EU member states have warned of the risks involved. Belgium has cautioned that outright seizure could potentially trigger a financial crisis, while bankers fear it could undermine global confidence in Western government bonds, Reuters reported.
Moscow has repeatedly threatened retaliation if Western governments move beyond using interest income. A person close to the Russian government told Bloomberg earlier this month that Russia could nationalize and quickly sell off foreign-owned assets under a new privatization procedure, potentially targeting hundreds of Western companies still operating in the country, including UniCredit, Raiffeisen Bank, PepsiCo, and Mondelez. Russian officials have also suggested that as much as $285 billion in Western foreign direct investment could be at risk.
Foreign Ministry spokeswoman Maria Zakharova warned last week that the global financial system would “feel the consequences” if Russian assets were seized.
