According to sources The Wall Street Jouranl, Goldman Sachs has made an application on participation in the placement of Russian sovereign bonds, however, so that it can be revoked at any time by referring to the position of senior managers of the Bank. After appropriate warnings by the U.S. government in Goldman Sachs decided to take this option.
According to the source, J. P. Morgan Chase has considered the possibility of application, but in the end the Bank decided not to do it. Bank of America Corp., Citigroup Inc., Morgan Stanley and Wells Fargo & Co. initially said its refusal.
Earlier, a source reported that Goldman Sachs has filed an application before the U.S. government began to convince banks not to participate in the placement. Now the Bank went back on their word and looking for a way to withdraw the application. Employee of the state Bank confirmed this information, noting that in such situation other banks that applied to participate.
American banks refused to place government securities of the Russian Video Channel
In an interview with the Deputy Chairman of the Board of Sovcombank Mikhail Avtukhov said that, most likely, the banks, decided to withdraw its application for participation in placing of Eurobonds should not arise any problems. “I think that this can be done before the signing of the agreement between the Issuer and the organizer or in this case, before the bidding. Formal agreement yet,” he explained. Avtukhov also noted that “banks can refer to a significant change in the environment in which the offer was made”.
Last week The Wall Street Journal wrote that American authorities have warned major banks of the USA from participation in the government bonds of Russia. In Washington felt that this may conflict with the sanctions policy against Moscow. Then the publication reported that not all banks were already defined with the further actions.
In early February it became known that Russia has sent 25 requests to foreign banks on the organization of a possible placement of Eurobonds in 2016. Requests, in particular, is directed Barclays, BNP Paribas, Bank of America Merrill Lynch, Bank of China, Wells Fargo, Goldman Sachs, J. P. Morgan, Deutsche Bank, Industrial and Commercial Bank of China, Crédit Agricole, Credit Suisse, Landesbank Baden-Wuerttemberg, Morgan Stanley, Mizuho Financial, Nomura, Citigroup, Societe Generale, Scotiabank, TD Securities, China Construction Bank, Agricultural Bank of China, HSBC, RBC Capital Markets, UBS, UniCredit, as well as three Russian banks: “VTB Capital”, Gazprombank, Sberbank CIB.