Saudi Arabia Sides with Russia Over Asset Seizure

MSN uses Bloomberg as source.
Saudi Arabia privately hinted earlier this year it might sell some European debt holdings if the Group of Seven decided to seize almost $300 billion of Russia’s frozen assets, people familiar with the matter said.

The kingdom’s finance ministry told some G-7 counterparts of its opposition to the idea, which was meant to support Ukraine, with one person describing it as a veiled threat. The Saudis specifically mentioned debt issued by the French treasury, two of the people said.

In May and June, the G-7 was exploring different options regarding the Russian central bank’s funds. The group eventually agreed to tap the profits generated and leave the assets themselves alone despite a US and UK push for allies to consider bolder options, including a direct seizure. Some euro-member nations were against that idea, concerned it could undermine the currency.

Were the European nations against the idea before the threat from Saudi Arabia?


More likely, it was the principle of reliability. If you can’t be sure you get your capital back when you want it, that the government might steal it instead, will you put capital in that country in the first place? Some years ago, I had to laff at proposals to allow banks in distress to seize their depositor’s money, to solve the bank’s problems. If that was law, do you think anyone would put any money in the bank?


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Many of Russia’s European assets are stuck in Euroclear and it’s now becoming a bit of a problem as to what to do with them. At the moment Euroclear is keeping any income from this money (as per T&Cs):

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