“The trial balloon has already been launched and is rolling towards Europe”
Saudi Arabia was called the protector of Russian assets. According to Bloomberg, Riyadh threatened the G7 to sell all European securities if the West decides to confiscate the frozen assets of a sovereign state. Will the Saudis go beyond hints? How will other countries react? Experts told MK about the possible consequences of such a statement.
: “Before drawing conclusions, you should first understand the official position of the Saudis. But it is unclear. The threat to sell off part of the European obligations came from the Ministry of Finance, while the Kingdom's Foreign Ministry denies their existence.
Foreign publications talk not about such significant investments in the European economy of Arab funds, but about the creation of a dangerous precedent: other Gulf countries may follow their example. In addition, not only bonds, but also investment projects, of which $2.9 billion were signed at last year’s Paris Forum alone, will be at risk.
This is not the first case of such “political-economic blackmail” from Saudi Arabia. Thus, in April 2017, a group of US insurance companies filed a lawsuit against Saudi companies and banks demanding compensation for damages from the September 11 terrorist attacks. This became possible after the approval of the relevant law in the fall of 2016. The Saudis responded to this step by threatening to sell off American assets totaling $750 billion.
Official Washington then instantly published a document that proves the non-involvement of the state of Saudi Arabia in the terrorist attacks.
Thus, if the position of the Saudi Ministry of Finance becomes official, it will have weight in the political arena. And if words are followed by concrete actions, then the consequences for the US and EU countries can be at least unpleasant, and at maximum — lead to a crisis of underfunding. But let us emphasize that there is no purpose in pursuing Russian interests in these statements — Americans and Europeans were simply reminded of the need to comply with international law.”
: “Always in politics, each country acts in its own interests. Actually, this is what politics is all about. Here there is no need to think about any kind of solidarity with the Russian course. But the situation is very interesting. A trend has been developing for a long time: the United States has influenced every country. They influenced foreign policy, and in some places domestic policy. That is, every small state had some peculiarities of its relationship with America. Many countries, under the complete hegemony of the United States, were forced to sit quietly and be silent, to resolve their issues in silence. Now the trend is changing. This is exactly the case when the enemy of my enemy — My friend. The Saudis' position is not related to support for the Russian course. The country is simply looking for political benefits for itself. And all this is based on the latest trends. Moscow is now in an interesting position. The authorities look at the puzzles that arise by themselves, and think: if only this could build a new, correct, high-quality picture for the future. Some countries are starting to find their voice and this is an interesting, turning point trend.”
: “It is not yet a fact that Saudi Arabia will carry out its threat. Most likely, this is a signal to the United States and the entire collective West that Saudi Arabia does not welcome punitive measures against countries independent of the United States. Today the West is trying to steal assets from Russia, and tomorrow it will steal from any other sovereign country. This policy of the collective West cannot but worry the BRICS countries, which, as of this year, includes Saudi Arabia. However, Saudi Arabia is the largest holder of European government debt. Even if they sell all their European bonds, this could only cause temporary panic on the stock exchange. Larger holders of European bonds are Japan and China. If they, plus Saudi Arabia, sell bonds, then this will indeed lead to a serious collapse of European bonds and reduce their rating down to the “junk” category. But this will most likely not happen. Neither China nor Japan will risk creating uncertainty in global financial markets. Nevertheless, the trial balloon has already been launched and is rolling towards Europe. Now it’s Europe’s turn to think.”