According to media reports, insiders revealed that Saudi Arabia had privately hinted earlier this year that if the Group of Seven (G7) decided to confiscate Russia's nearly $300 billion frozen assets, it may sell off some of its holdings of European bonds.
According to insiders, the Saudi Ministry of Finance has expressed its opposition to the confiscation of Russian assets to some G7 finance ministers. A person familiar with the matter described this as a "subtle threat," and two sources said that the Saudi side also specifically mentioned bonds issued by the French Ministry of Finance.
Statistics show that since the outbreak of the Russia-Ukraine conflict in 2022, the G7 member states and the EU have frozen a total of about 325 billion dollars of Russian assets. According to other data, approximately $228 billion of Russia's overseas assets are located in the European Union.
In May and June of this year, while exploring the use of Russian assets to support Ukraine in the G7, the United States and the United Kingdom encouraged EU countries to confiscate these assets. But some Eurozone member countries are concerned about retaliation from Russia, which may also lead to other countries withdrawing their assets in Europe, thereby damaging the euro.
In the end, G7 decided to use the interest on frozen Russian assets as collateral to provide Ukraine with a $50 billion loan. Insiders suggest that Saudi Arabia's stance may have influenced the thinking of these eurozone countries.
In response, the Saudi Ministry of Finance stated in a statement that "there has been no such threat" and emphasized that "our relationship with the G7 and other countries is mutual respect." A Saudi official stated that this threat is not in the government's style.
It is understood that the euro bonds and French bonds held by Saudi Arabia may be as high as tens of billions of euros. If they are sold, they may not have a significant impact. But European officials are still concerned that other countries may follow Saudi Arabia's approach.
One of the insiders stated that Saudi Arabia's position has changed after the G7 decided not to confiscate Russian assets. On the 27th of last month, Saudi Crown Prince and Prime Minister Mohammad met with Ukrainian President Zelensky in the capital Riyadh. The two sides discussed the latest developments in Saudi Arabia Ukraine relations and the Russia Ukraine crisis.
According to insiders, the main motivation behind Saudi Arabia's move is currently unclear. However, analysis suggests that Saudi Arabia has demonstrated its growing influence in the international community, reflecting that the country is accelerating its strategic autonomy and aiming to become a regional power with global influence.