Saudi Arabia threatens to sell European debt if the G7 member states decide to confiscate almost $300 billion of frozen Russian assets. This was reported by Bloomberg.
Details
Earlier this year, Saudi Arabia privately hinted that it might sell some European debt if the G7 countries decide to seize nearly $300 billion of Russia's frozen assets.
In particular, the Treasury Department informed some G-7 partners of its disagreement with this idea, which was intended to support Ukraine.
As noted in the publication, the Saudis specifically mentioned the debts issued by the French Treasury.
In , Bloomberg explains that the Saudi kingdom's holdings in euros and French bonds could be in the tens of billions of euros, but they are probably not large enough to make a significant difference.
Nevertheless, European officials are still concerned that other countries may follow Saudi Arabia's lead.
It is also noted that Saudi Arabia owns $135 billion worth of US Treasury bonds.
Context
In May and June, the G7 explored various options regarding the Russian central bank's funds.
In the end, the group agreed to use the profits and leave the assets themselves alone, despite the fact that the US and UK insisted that the allies consider bolder options, including an outright seizure. However, some G7 member states were against the idea, fearing it could undermine the currency.
Recall
European Commission President Ursula von der Leyen said that in July 1.5 billion euros of profits from frozen Russian assets will become available for Ukraine.