The Group of Seven “likely” abandoned the US plan to expropriate Russia’s frozen central bank assets due to a “veiled threat” from Saudi Arabia, Bloomberg has reported.

“privately hinted” that it might sell some of its EU debt holdings if the G7 went ahead with the confiscation plans, Bloomberg reported on Tuesday citing “people familiar with the matter.”

“a veiled threat,” while two others said Riyadh specifically mentioned French treasury debt.

“likely influenced” the G7 to stop short of seizing the frozen Russian funds and opt to turn the interest they generated into loans to Kiev. Moscow has condemned the move as illegal, with former President Dmitry Medvedev suggesting it could be interpreted as a cause for war.

When reached for comment, however, the Saudi Finance Ministry told Bloomberg that “no such threats were made.”

“Our relation with the G7 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 ministry said.

“style” and that the ministry might have merely outlined the “eventual consequences” of seizures to the G7.

The February 2022 freezing of Russian sovereign assets was a move without precedent. A number of experts in the West have cautioned against attempting to confiscate the funds, noting that this could undermine the dollar, the euro, and the entire global financial system.