HomeWorldSaudi Arabia issued a strong threat to the G7 if it touches Russian assets

Saudi Arabia issued a strong threat to the G7 if it touches Russian assets

Riyadh would sell holdings of European debts and they fear that its example will be copied by other countries.

Saudi Arabia reportedly hinted privately earlier this year that it could sell some holdings of European debt if the Group of Seven (G7) decides to seize nearly $300.000 billion of frozen Russian assets. This was stated by anonymous people familiar with the matter to international media.

According to the sources consulted, the Minister of Finance of the Arab country informed his counterparts in the organization of his opposition to the expropriation of funds to help the kyiv regime. One of the people described the Saudi stance as a “veiled threat.”

Specifically, Riyadh referred to the possibility of selling its holdings of debt issued by the French Treasury. The kingdom's holdings in French bonds and euros can amount to tens of billions of euros. While they are probably not large enough to make a significant difference if they were sold, the threat was worrying to European officials given that other countries could adopt the same measures.

The G7 previously agreed to use the profits generated and leave frozen Russian assets intact, despite pressure from the United States and the United Kingdom for their allies to consider bolder options. Some Eurozone member countries opposed it amid concerns that the seizure could undermine the currency. Saudi Arabia's concerns would have influenced the stance of those countries, the people consulted said.

For his part, an official in Riyadh said that it was not his government's style to make such threats, but that the possible consequences of any confiscation had possibly been explained to the G7 countries.

The sources also said it was unclear whether the kingdom acted out of self-interest, fearing that the seizure would set a precedent that could be used in the future against other nations, or in solidarity with Russia, given that Riyadh and Moscow maintain close relations since the beginning of the Ukrainian conflict.

sourceAgencies

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