USA warned investors against buying Russian government bonds


According to the Wall Street Journal with reference to its insiders, all major US banks and investors have received a recommendation from the US Treasury and the State Department to refrain from purchasing Russian securities.

In 2016, for the first time after the imposition of sanctions, Russia decided to issue international bonds worth at least $3 billion. According to WSJ, Russia has also sent direct private invitations to take part in purchasing of the bonds to all major global investors and banks, including Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase & Co., and Morgan Stanley.

At the same time, some US banks addressed the US Treasury with the request whether the purchase of such securities would contradict the sanctions policy of the authorities. In a joint response of the State Department and the Ministry of Finance, it was vaguely said that such purchases might contradict the sanctions.

And now, according to the Wall Street Journal, all financial institutions have received tacit recommendation “not to buy”, but it was explained not by the sanctions, but by the fact that Russia will be unable to fulfill its obligations.

“It is important that private companies in the United States, the European Union, and throughout the rest of the world understand that Russia remains a high risk market, as it continues efforts to destabilize Ukraine”, – said in the recommendations.