Saudi Arabia’s reported threat to the G7 over the holdings proves Moscow’s point, Dmitry Peskov claims
Western attempts to confiscate Russian assets are causing damage to the international financial system and worrying other countries, Kremlin spokesman Dmitry Peskov said on Tuesday.
It follows a report by Bloomberg last week, which claimed that Saudi Arabia had threatened to sell some of its EU debt holdings if the Group of Seven (G7) went ahead with the confiscation plans.
The US and the EU – both members of the G7 – froze almost $300 billion in assets belonging to Russia’s central bank as part of sanctions imposed on Moscow over the conflict in Ukraine. Last month, the EU decided to use some of the interest generated by the funds to provide military aid to Kiev.
Bloomberg suggested that the G7 had abandoned plans to seize the funds outright after the “veiled threat” from Riyadh.
”We have long warned that illegal attempts to rob the Russian Federation, to expropriate our holdings, will one way or another cause huge damage to the international financial system and will make many big and rich countries feel concerned about the fate of their holdings abroad,” Peskov said, as quoted by TASS news agency. “That’s what is happening now.”
The Saudis specifically mentioned debt issued by the French treasury, Bloomberg reported, citing its sources. Riyadh’s holdings of euro and French bonds “probably aren’t big enough” to make a “major difference” if they were sold off, the outlet wrote. It noted, however, that European officials were still concerned because other countries might follow the kingdom’s lead.
The bulk of Russia’s assets is held in Brussels-based depository and clearing house Euroclear, generating roughly €4.4 billion in interest last year.
In June, the EU Foreign Affairs Council announced that it would make windfall profits from immobilized Russian assets available to Ukraine. The first tranche of €1.4 billion is expected to be transferred this month, and will be used to purchase ammunition and aerial defense systems. Another €1 billion will be transferred by the end of the year.
Russia has said any actions taken against its assets would amount to “theft,” stressing that seizing the funds or similar moves would violate international law and lead to retaliation. It has also warned that aiding Kiev is only prolonging the conflict.
