Saudi Arabia’s reported threat to the G7 over the holdings proves Moscow’s point, Dmitry Peskov claims
Kremlin spokesman Dmitry Peskov stated on Tuesday that Western efforts to seize Russian assets are causing harm to the global financial system and raising concerns for other nations.
This statement comes after a Bloomberg report last week, which claimed Saudi Arabia 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 nearly $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 these funds to provide military aid to Kyiv.
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 majority of Russia’s assets are held in Brussels-based depository and clearing house Euroclear, generating approximately €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 stated that any actions taken against its assets would constitute “theft,” emphasizing that seizing the funds or similar moves would violate international law and lead to retaliation. It has also cautioned that aiding Kyiv is only prolonging the conflict.