You knew this was going to happen.
From Bloomberg, July 9
- Warning made to EU states, said people familiar with matter
- Move underscores Saudi Arabia’s growing diplomatic clout
Saudi Arabia privately hinted earlier this year it might sell some European debt holdings if the Group of Seven decided to seize almost $300 billion of Russia’s frozen assets, people familiar with the matter said.
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.
In May and June, the G-7 was exploring different options regarding the Russian central bank’s funds. The group eventually agreed to tap the profits generated and leave the assets themselves alone despite a US and UK push for allies to consider bolder options, including a direct seizure. Some euro-member nations were against that idea, concerned it could undermine the currency.
Saudi Arabia’s stance likely influenced the reluctance of those countries, said the people, who asked not to be identified to discuss private conversations.
“No such threats were made,” according to a statement sent from the Saudi finance ministry. “Our relation with the G-7 and others is of mutual respect and we continue to discuss all issues that promote global growth and enhance the resilience of the international financial system.”
The kingdom’s holdings of euro and French bonds may amount to tens of billions of euros, but probably aren’t big enough to make a major difference if sold off. European officials were still concerned because other countries might have followed Saudi Arabia’s lead.
One Saudi official said it wasn’t the government’s style to make such threats but that it possibly outlined to G-7 members the eventual consequences of any seizures....
....MUCH MORE
Though international thinking on odious debt is pretty much hammered out and agreed upon—at least in principle if not in principal, depending on who has to take the write-off—the construct of odious assets is much newer and obviously more fun....
And going back to the Canadian trucker protest, when a sticky-fingered sovereign starts making moves to creatively acquire assets not their own, other nations will take note.
"Russia Seizes Over 650,000 Acres Of Farmland And Other Assets From Company With Ties To 'Unfriendly' Country"
Don't be going all Chrystia Freeland there Vlad....
In addition to the story linked in the intro where the Canadian Vice-Premier and Finance Minister implemented the government's plan to freeze-n-seize bank accounts of the protesting Canadian citizens, Ms Freeland has been at the forefront of efforts to do the same with Russian assets, e.g.
May 20, 2022: Financial Post, "Ottawa is currently creating a legal framework for the seizure of Russian assets"
November 9, 2023: WaPo, "Canada wants to give a Russian plane it seized to Ukraine. Is that legal? "
Feb 28, 2024: Reuters, "Canada agreed on the urgent need to move forward with confiscating frozen Russian sovereign assets to help Ukraine, Finance Minister Chrystia Freeland said on Tuesday."
March 17, 2024: "The Canadian behind the West’s massive sanctions on Russia says it’s time for Round 2"
Someday I'll get around to the story of her grandfather seizing "some Jew's" printing business so he could write propaganda for the Nazis.
Anyhoo, the Canadian Government's actions in February 2022 caught the eye of quite a few people who took note of the Government's attitude toward other people's property.
In a final warning, finance minister says truckers at the protest will be stripped of their insurance...
And February 18, 2022:
Short of War, What Just Happened In Canada May Be The Biggest Story Of The Covid Era
...Even though we had been following the story closer than many folks, at that point we really had no idea how big and how important the the unfolding events were....
And a couple day's later, February 20, 2022:
"Canada wants to make financial aspects of Emergencies Act permanent"
The financial aspect of the Canadian government's power grab is part of what that The Blind Spot's Izabella Kaminska was looking at and the reason it is such a big story. The fact a government thinks it can take your money because you disagree with it's policy proposals is breathtaking in its audacity. Who the hell do these people think they are? And since Izzy's post the totalitarian claws have really come out.
Have I ever mentioned Hitler's Enabling Act of 1933?*
From the truly awesome watchdogs at Reclaim the Net, February 19....
....MUCH MORE
Once you get a reputation as having a situational ethics approach to property rights, folks will think twice before sending their money to Bay Street.
And three weeks after the Russians invaded:While The West Attempts To Rouse The Oligarchs Against Putin, It May Actually Be Assisting Him To Sideline Oligarchic Power
...."The Great Decoupling: How Western Sanctions Are Pushing Moscow East"And many many more. Sometimes I wonder if the American and other NATO leaders know what they are doing e.g. February 2024:Key Creator Of Russia Sanctions Leaves U.S. Treasury To Pursue Opportunities In The Private Sector
As we've pointed out, the Western countries had eight years between Russia reasserting its control over Crimea after the Maidan Coup in 2014 and Russia invading Ukraine in February 2022.
Eight years and the best they came up with was sanctions that did more harm to Europe than to Russia. And drove China and Russia closer together faster than anyone ever imagined. And destroyed faith in U.S. Treasury debt and Fed currency as inviolate (sans a court order.)...
A bit of frustration in September 2023:
"The US wants to weaponize the USD, Russia and Saudi Arabia will weaponize oil instead."
What the hell did the O'Biden-Harris administration do?
Seriously, who is pulling the strings that led to this result? It sure ain't President Biden AKA "Joey Mumbles."