Italian premier says Trump's Russian diesel deal 'very risky'

Speaking in the Senate ahead of the European Council summit, Meloni, who was considered a "Trump whisperer" before they fell out, said the surge in fuel prices was primarily driven by the war in Iran rather than Ukraine, questioning the rationale behind the US decision.

"Therefore, the outcome of this decision is uncertain, while the risks are clear: legitimization for Moscow," Meloni said, highlighting the potential risks of "additional revenues to finance its war and a weakening of Western sanctions leverage."

She said the agreement could send "contradictory" signals at a time when Western countries, including the US, have been seeking to pressure Russian President Vladimir Putin to negotiate an end to the war in Ukraine, which continues since 2022.

The Italian premier also called for a stronger European role in efforts to end the war, urging EU member states to appoint an authoritative representative with a mandate from all 27 countries to ensure Europe has a unified voice in negotiations.

"We must ensure that Europe does not stand idly by," Meloni stressed.

She criticized the possibility of France, Germany and the UK pursuing diplomatic initiatives through the so-called E3 format without a collective EU mandate, saying any such efforts should be conducted on behalf of all member states.

Trump has urged Russia and Ukraine not to strike each other's energy sites, and last week announced that Moscow will supply ​diesel to global markets in an effort to lower fuel prices. His administration also temporarily lifted US sanctions on Russian fuel.

Meloni identified high energy prices as the main challenge facing the Italian economy and business competitiveness, calling for a coordinated and rapid European response.

She reiterated Rome's position on the next EU budget, saying Italy would not accept an agreement that comes at the expense of the Common Agricultural Policy (CAP), fisheries or cohesion funding.

Acknowledging the objective set by the bloc to reach an agreement by the end of the year, she said Italy would not support a deal simply to meet a deadline.

"We will only sign an agreement when it is right for Italy," Meloni said.