As a reminder, we noted in May the European Union had approved a US-backed plan to use profits and interest generated from Russian assets to help arm Ukraine; however that was a sharp reversal from the previously proposed plan – one which was heavily promoted by Zelensky and Ukraine – to confiscate some $300 billion in Russian assets. Many were wondering what prompted the reversal.
Now we know, and as Bloomberg notes “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.
Most of the $300 billion in frozen Russian assets are held in Europe – particularly France, Germany, and Belgium. Which makes today’s report from Bloomberg even more interesting from a geopolitical fissures perspective, as it means that as a result of its ability to spark a liquidation panic in Europe’s unstable bond market, it has far more leverage than Ukraine and the “virtue signaling” western media.
www.zerohedge.com/geopolitical/veiled-threat-saudis-warned-g-7-against-russian-asset-seizure-plan