Saudis Threatened To Sell European Bonds If Russian Assets Were Confiscated

"In a fascinating geopolitical development, Bloomberg reports that Saudi Arabia privately

hinted earlier this year it would sell some (or all) of its European debt holdings if the G-7 confiscated Russia's frozen assets. 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. 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." ZH