The EU has recommended that banks not to participate in the placement of Eurobonds of the Russian Federation

The EU has recommended that banks not to participate in the placement of Eurobonds of the Russian Federation


Moscow. March 15. Officials of the European Commission advised European banks not to participate in the forthcoming transaction on placing of the Russian Eurobonds, according to Financial Times, citing its sources.

Sanctions the rules do not prohibit banks to participate in the organization of placement of sovereign securities of the Russian Federation, but officials, echoing concerns previously expressed by the U.S. Treasury, warned that the proceeds from the sale of securities can be misused.

EconomyFebruary 25 2016Россию asked not to animationthe read more

According to the newspaper, if the European banks also will refuse to participate, then Moscow may be forced to abandon the sale of securities.

European officials warned banks about the risks associated with the fact that the placement of Eurobonds can be a way to circumvent sanctions. For example, funds may be spent under sanctions, the Bank will need this year to extinguish Eurobonds.

“Obviously, they don’t want to participate. We talked”, – told the newspaper one of the bankers.

Earlier, representatives of the Russian Finance Ministry said that they were able to attract a sufficient number of banks to continue work on the organization of accommodation.

American banks, following the recommendations of the U.S. government, refused to participate in the organization of the transaction. Only the Finance Ministry in early February, sent requests to banks 28.

“Mailing list” of the Ministry of Finance was broad, in addition to the traditional participants of the Russian sovereign loans, there are both banks, it is still not too active in the Russian Federation. In the list were Barclays, BNP Paribas, Bank of America Merrill Lynch, Bank of China, Wells Fargo, “VTB Capital”, Gazprombank, Goldman Sachs, J. P. Morgan, Deutsche Bank, Industrial and Commercial Bank of China, Credit Agricole, Credit Suisse, Landesbank Baden-Wuerttemberg, Morgan Stanley, Nomura, Sberbank CIB, Citigroup, Societe Generale, TD Securities, HSBC, RBC Capital Markets, UBS, Scotiabank, China Construction Bank, Agricultural Bank of China, UniCredit and Mizuho Financial.

The latest issue of Eurobonds of Ministry of Finance on the $7 billion posted in September 2013, organized “VTB Capital”, Deutsche Bank, Barclays, Royal Bank of Scotland, Gazprombank, “the Renaissance the Capital”.

Russia plans in 2016 to place Eurobonds on the whole are recorded in the budget amount to $3 billion in one tranche, said Finance Minister Anton Siluanov.

Sanctions prohibit investors to buy Russian sovereign paper.