Saudi Arabia privately hinted earlier this year that it might sell some European debt holdings if the Group of Seven (G-7) decided to seize nearly $300 billion of Russia’s frozen assets, reports Bloomber quoting people familiar with the matter.
The kingdom’s finance ministry communicated its opposition to the G-7's proposal, intended to support Ukraine, with one source describing it as a veiled threat. Saudi Arabia specifically mentioned debt issued by the French treasury, two sources said.
Riyadh has been concerned about Western efforts to confiscate the Kremlin's assets for months.
In April, Politico reported that Saudi Arabia, along with China and Indonesia, was privately lobbying the EU against such actions.
Saudi Arabia’s threat to offload European debt would demonstrate its willingness to use its economic power to influence Western policymakers.
In June, the G-7, which includes the US, Canada, the UK, France, Germany, Italy, and Japan, agreed to issue Ukraine $50 billion in loans backed by profits generated from Russian assets. However, this plan stopped short of a full seizure of the roughly $322 billion in Russian central bank assets frozen in the West.
Bloomberg suggested that Saudi Arabia’s warning likely bolstered opposition among some EU member states against a more aggressive approach, despite lobbying efforts by the US and UK for a direct seizure.
