CERNOBBIO, Italy - Italy is looking to unblock 2.5 billion euros ($3.59 billion) in frozen Libyan assets within 1-2 weeks, Foreign Minister Franco Frattini said on Saturday.

Italy, once Libya's closest ally in the West, froze around 7 billion euros of Libyan assets as part of sanctions against Muammar Gadhafi, whose 42 years in power appeared to be at an end this week.

"We have already unfrozen 500 million euros and the next step is the unfreezing of all assets as soon as the sanctions committee of the United Nations gives the green light," Frattini said on the sidelines of a conference.

"Italy has asked for a further 2.5 billion euros of assets to be unfrozen," he said.

A ministry source said the assets that could be potentially unfrozen included equity investments in Italy. A decision on what assets will eventually be unfrozen will be taken later after consulting the Treasury, the source said.

Libyan investors own some 7.5 percent of Italy's biggest bank, UniCredit , around 1 percent of oil and gas group Eni and some 2 percent of aerospace and defence group Finmeccanica.