2024-07-09 22:58:04
Saudi Arabia reportedly indicated privately earlier this year that it may sell some holdings of European debt if the Group of Seven (G7) decides to seize nearly $300 billion of frozen Russian assets. Anonymous people familiar with the matter told the international media.
According to the sources consulted, the Minister of Finance of the Arab country informed his colleagues in the organization about their opposition to the expropriation of funds to help the kyiv regime. One of the people described the Saudi position as “a real threat.”
Specifically, Riyadh referred to the possibility of selling its debt holdings issued by the French Treasury. The kingdom’s holdings in French bonds and euros can amount to tens of billions of euros. Although they are probably not big enough to make a significant difference if they were sold, the threat was a cause for concern for European officials as other countries could take similar measures.
The G7 previously agreed to use the profits generated and leave Russia’s frozen assets intact, despite pressure from its allies the United States and the United Kingdom to consider bolder options. Some member states in the Eurozone opposed it amid concerns that the seizure could undermine the currency. Saudi Arabia’s concerns would influence those countries’ positions, the people consulted said.
For his part, an official in Riyadh said that it is not his government’s style to make such threats, but that the consequences of any confiscation may have been explained to the G7 countries.
The sources also said it was unclear whether the kingdom acted out of self-interest, fearing the seizure would set a precedent that could be used in the future against other nations, or in solidarity with Russia, since Riyadh and Moscow maintain close relations. since the beginning of the Ukrainian conflict.
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