The sanctions announced by Washington in April on a number of transactions with Russian sovereign debt took effect on Monday, June 14. It is reported by TASS…
American financial institutions are now prohibited from participating in transactions on the primary market for ruble or non-ruble bonds issued after June 14, 2021 by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation or the Ministry of Finance of the Russian Federation. A ban is also introduced on lending ruble or non-ruble funds to these three organizations
Restrictions apply only to newly issued ruble sovereign debt on the primary market, but not on the secondary market and not on existing sovereign debt holders.
On June 9, Russia borrowed ahead of the entry into force of new sanctions in the United States, placing federal loan bonds (OFZ) at a record par value in the last two months. Two OFZ auctions were held. As a result of the first, nine-year securities were placed with a total volume of 20.9 billion rubles with an aggregate demand of 40 billion. The yield on the issue, the face value of which is indexed and tied to the inflation rate, amounted to 2.75 percent per annum. During the second auction, OFZs were placed with a validity period of 10 years and a constant coupon for 61 billion rubles – with a total demand of 148 billion. The yield on the securities was 7.39 percent per annum.
Bloomberg previously reported that the United States, in addition to sanctions on Russian debt, will expel ten Russian diplomats from the country and introduce new sanctions against individuals and legal entities from Russia. As it became known, restrictions will be imposed on 20 Russian organizations and 12 Russians, including representatives of the government and intelligence. Such measures will be in response to alleged Russian interference in the US presidential elections and attributed to it hacker attacks through software firm SolarWinds.