Bloomberg learned about Riyadh's threat due to the confiscation of Russian assets

Saudi diplomats privately “hinted” that they might sell some of the European bonds during the confiscation of Russian assets, BLOOMBERG found out . Riyadh denied these data, Moscow promised to respond to the confiscation in the same way

Saudi Arabia privately “hinted” earlier this year that it might sell some European debt if the G7 countries ( UK , Germany , Italy , US , France , Japan and CANADA ) decide to confiscate Russia’s nearly $300 billion in frozen assets, Bloomberg reports with reference to sources.

According to the agency's interlocutors, the Kingdom's Ministry of Finance expressed its disagreement with some G7 countries with the idea of ​​using Russian assets to help Ukraine , and one of the sources described this as a veiled threat. “The Saudis specifically mentioned debts issued by the French Treasury,” Bloomberg quoted two sources as saying.

At the same time, the Saudi Foreign Ministry told the agency in a comment that there were no such threats. “Our relations with the G7 and other countries are based on mutual respect, and we continue to discuss all issues that contribute to global growth and increase the stability of the international financial system,” the ministry emphasized.

As Bloomberg notes, the kingdom's holdings of euros and French bonds could amount to tens of billions of euros, but these amounts are not large enough to make a "big difference" if they were sold. However, according to the agency, Riyadh's "hints" are causing concern among European officials, as other countries may eventually follow its example.

Officially, Saudi Arabia does not disclose the number of bonds purchased by the kingdom in Western countries, however, according to Washington data for March, the kingdom's investments in US treasury bonds amounted to $135.9 billion. For comparison: according to AGBI, investors from the Persian Gulf countries own French assets on amounting to €14 billion ($15.1 billion). Just last June, at the Paris Forum, France and Saudi Arabia signed investment agreements worth $2.9 billion.

After the start of the military operation in Ukraine, Western countries froze the assets of the Russian Central Bank in the form of cash and securities worth about €260 billion. More than two-thirds of them are in the Belgian Euroclear. The Russian Ministry of Finance in 2022 estimated the volume of frozen assets at approximately $300 billion.

Western leaders have repeatedly announced the development of a plan to confiscate Russian assets, including frozen funds of the Central Bank, as well as foreign assets of Russians subject to sanctions . Ukrainian President Vladimir Zelensky called for these funds to be used to help and restore Ukraine, which he estimated at more than $1 trillion.

The Kremlin warned that the possible confiscation of Russian assets would be “a solid nail in the future coffin” of the Western economy and “the subject of legal proceedings.” Finance Minister Anton Siluanov promised to respond with mirror measures, noting that RUSSIA has every opportunity to do this.

Deputy Chairman of the Russian Security Council Dmitry Medvedev noted that the theft of state assets under certain conditions can be qualified as casus belli (legal term: a formal reason for declaring war. -). At the same time, the politician emphasized that Russia is not going to “attack the West,” despite its direct involvement in the conflict in Ukraine.