NEW YORK (Reuters) - Parmalat SpA (PLT.MI: Quote, Profile, Research) is seeking $2.2 billion from Citigroup Inc (C.N: Quote, Profile, Research) over the largest U.S. bank's alleged responsibility for the Italian food company's 2003 bankruptcy, people familiar with the case said.

Citigroup is seeking $699 million of damages on its own claims, one of the people said. Both parties revealed the sizes of their claims in a hearing Monday before Judge Jonathan Harris of Bergen County Superior Court in New Jersey, published reports said.

Parmalat originally sought $10 billion in the case, but Harris last month threw out claims that alleged fraud, racketeering and unjust enrichment, as well as a claim for punitive damages.

The judge let Parmalat Chief Executive Enrico Bondi pursue a claim that Citigroup aided and abetted a breach of fiduciary duties by corrupt, former Parmalat insiders, who stole from the company. Harris also let Citigroup pursue its own claims against Parmalat, including fraud and theft.

"Citi is a victim of Parmalat's fraud, and we are confident that the merits of our position will be demonstrated at trial," Citigroup spokeswoman Andrea Hurst said.

Best known for its long-life milk, Parmalat collapsed under about 14 billion euros ($21.7 billion) of debt after uncovering a 4 billion euro ($6.2 billion) hole in its accounts. It emerged from bankruptcy in 2005.

Bondi has accused some 50 defendants of helping prior Parmalat management hide debt and inflate results and has obtained more than $800 million of settlements.

(1 euro = US$1.55)

(Reporting by Jonathan Stempel; Editing by Andre Grenon)