BRICS member Saudi Arabia has issued a new warning to the G7 alliance, urging them not to seize $300 billion in frozen Russian assets. Saudi Arabia privately hinted earlier this year it might sell some European debt holdings if the G7 went through with the seizure, according to a Bloomberg report.
The G7 initially proposed the seizure to support Ukraine and punish Russia early this year. However, since its inclusion in the BRICS alliance, Saudi Arabia and Russia have strengthened their ties and support towards one another. Therefore, with the Group of Seven threatening the Russian Central Bank’s funds, Saudia Arabia is threatening consequences.
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BRICS in Good Hands Battling The G7 Thanks to Saudi Arabia
The US and UK have reportedly pushed the G7 to consider bolder options to handle the seized Russian assets, including a full direct seizure. Some euro-member nations were against that idea, however, concerned it could undermine the currency. Since Saudi Arabia has grown as a global power over the past decade, it has a stronger voice in affairs such as this, motivating Western nations to reconsider.
For context, the kingdom’s holdings of Euro and French bonds may amount to tens of billions of euros. While this may not make an immediate difference if immediately sold off, the G7 is worried that the BRICS nation will inspire other countries to do the same, throwing both currencies into a spiral. Saudia Arabia eased up on its threat when a new G7 proposal excluded a full direct seizure of the frozen assets.
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Events like this further showcase why the BRICS inducting Saudi Arabia into the bloc was such a powerful move. The Middle Eastern nation has an influence on the West and G7 alliance, becoming a diplomatic powerhouse recently. Therefore, the West will be careful how it handles and battles BRICS, as Saudia Arabia could flip the battle in the bloc’s favor with a single action.