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Wednesday, March 21, 2018

“American banks are advised not to invest in Russian government bonds”

The us authorities advised the largest banks to withdraw from the purchase of government bonds of Russia, as this would violate the sanctions regime against Moscow, writes The Wall Street Journal.

photo: morguefile.com

American authorities warned the bankers that aid in attracting external funding for Russia would be contrary to U.S. foreign policy.

“It is important that private companies in the U.S., the EU and the rest of the world understand that Russia will remain a market with a high degree of risk, while it would continue efforts to destabilize Ukraine”, — said the WSJ at the state Department. This is also the position of the U.S. Treasury.

Sanctions rules do not directly prohibit banks to participate in the placement of Russian sovereign bonds. However, some managers of credit institutions fear that if they participate in the deal, Russia will direct funds to the company from the “black list”. Thus, banks may inadvertently violate sanctions policy, says the WSJ.

In addition, some officials believe that selling bonds is a kind of “loophole” for Moscow. In that case, if the banks will participate in the purchase of bonds, Russia will be able to call the sanctions meaningless, citing the fact that she indirectly received assistance from credit organizations in the United States.

Russia intends to host this year bonds for $ 3 billion. According the WSJ, the Russian Ministry of Finance were invited to participate in buying European, Chinese and American banks, including Bank of America, Citigroup, Goldman Sachs, J. P. Morgan Chase & Co. and Morgan Stanley.


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