The U.S. government has recommended banks to stop using Russian government bonds


The U.S. government recommended that a few large banks to withdraw from the purchase of government bonds in Russia. About it writes The Wall Street Journal, citing sources familiar with the situation.

According to the newspaper, in 2016 in Moscow for the first time since the imposition of sanctions will issue international bonds worth at least $3 billion As the WSJ alleges, Russia has been 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.

As a result, the Finance Ministry and the US state Department has issued a special warning, having received from banks questions about whether they can participate in the purchase of bonds. Thus, Washington believes that such transactions would be contrary to the sanctions 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. The representatives of the Ministry also warned of “reputational risks” when they return to normal business with Russia.

As noted by the WSJ, not all American banks have already decided on a course of action. Thus, in Citigroup told the newspaper that the Bank will not participate in the purchase of bonds. In turn, other credit institutions, including Goldman Sachs and J. P. Morgan continue to weigh the possibilities.

Buy Russian bonds do not directly contradict the restrictions of the sanctions, which were imposed by Washington. Meanwhile, managers of some banks fear that if they participate in the deal, then Russia will send in funds raised under the sanction of the company. 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. This, as pointed out by the WSJ, can become a fiasco in foreign policy of Washington.