Saudis issues warning to G7 over Russian assets
Date
7/11/2024 8:09:19 AM
(MENAFN) According to a recent report by Bloomberg, the Group of Seven (G7) nations reportedly abandoned a United States proposal to confiscate approximately USD280 billion in frozen Russian central bank assets following a "veiled threat" from Saudi Arabia. The assets had been frozen by the West in 2022 amid tensions stemming from the Ukraine conflict, with the United States and United Kingdom advocating for their expropriation. However, the European Union, where most of these assets are held, expressed concerns about potential risks to the euro if such actions were pursued.
Bloomberg's sources, described as individuals familiar with the matter, indicated that Saudi Arabia subtly hinted at the possibility of selling some of its holdings of European Union debt if the G7 proceeded with the plan to seize Russian funds. Specifically, Riyadh allegedly referenced French treasury debt in its communications, leading to interpretations of the message as a form of veiled threat by some of Bloomberg's informants.
The influence of Saudi Arabia's purported stance reportedly played a significant role in the G7's decision to refrain from outright confiscation of the frozen Russian assets. Instead, the G7 opted to convert the interest generated from these assets into loans directed towards supporting Ukraine. Moscow has vehemently criticized this move, labeling it as illegal, while former Russian President Dmitry Medvedev has warned that such actions could escalate tensions to the point of conflict.
In response to Bloomberg's inquiries, the Saudi Finance Ministry denied making any explicit threats related to the G7's deliberations on Russian asset confiscation. The revelation underscores the complex geopolitical dynamics at play and the various considerations influencing international decisions amid ongoing global tensions.
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