Contents tagged with Russian banks
Investors refuse to lend to Russian government
The Russian government continues to struggle to borrow money on the market due to the mass exodus of foreign investors and the reluctance of the major Russian banks to risk US sanctions, finanz.ru reports.
At the auction which was held on Wednesday, the Russian Finance Ministry failed for the second consecutive week to raise the targeted capital through Federal Loan Bonds (OFZs).
Investors were offered 15 billion rubles of 3-year bonds and 5 billion of 11-year bonds, but the budget was only …
More than $6 billion withdrawn from Russian banks in one month
The outflow of capital from the Russian banking system has picked up speed once again, according to a new survey by Raiffeisen Bank.
In August, corporate clients withdrew $4.9 billion from their accounts, 60% more than in July ($3 billion). The funds were partially used to repay foreign debt, the refinancing of which has come to a halt due to tightened sanctions on Russia from the US and EU. According to the Central Bank of Russia, companies had to make $3.1 billion in repayments.
Russian bond market enters downward spiral
Russia’s government debt market continues to plummet into the abyss, dragging the ruble alongside it, despite the Russian Finance Ministry’s calls for investors not to panic, writes finanz.ru.
The price of Russian government bonds has fallen for four consecutive days, and the currency exchange rate is approaching 70 rubles per US dollar, due to reports that US senators have begun discussing a new sanction package based on the Defending American Security from Kremlin Aggression Act.
Threat of new US sanctions sends Russian government bank shares tumbling
Russian government bank shares continue to plummet on the Moscow Exchange due to the threat of new US sanctions, which at first seemed unlikely, but are becoming more real every day.
After US Senator Chris Van Hollen said that the bipartisan sanctions bill will target the Russian banking sector, Sberbank and VTB Bank’s share prices began to drop at an accelerating rate.
At the end of trading on Thursday, Sberbank’s shares had lost 4.84%, closing at a price of 178.71 rubles, a low since August …
Russian businesses prepare to be cut off from US dollar
Major Russian businesses have started preparing for new US sanctions which, in addition to prohibiting investments into Russian government debt, will also block certain Russian government banks from transacting in dollars.
According to the Russian news agency TASS, such companies as Alrosa and Nornickel have already tried out the first deals without the dollar system.
Alrosa, the world’s leading diamond miner by volume, which has earned $3 billion in the first 7 months of 2018, has tested a …
Russian government bonds depreciate to a 5-year record low
Neither the stabilization of developing markets nor the attempts to strengthen the ruble have been able to halt the collapse of Russian government debt on the market, finanz.ru reports.
At the end of trading last Thursday, the Russian Government Bond Index (RGBI) fell another 0.3 points, reaching a low since February 2017 – 134.59 points.
Federal Loan Bonds (OFZs) depreciated on the Moscow Exchange for 12 consecutive days, something which the market has not seen in more than 5 years. Only in …
US special envoy Volker promises more sanctions on Russia
The US currently has many packages of sanctions against Russia, and they will increase until Russia starts to collaborate in the search for a resolution of the conflict in Ukraine, the violation of human rights, and so on, said US State Department Special Representative for Ukraine Kurt Volker in an interview with the Pryamiy TV channel.
“The sanctions, I believe, are already having an effect. They have not yet changed Russia’s fundamental policy towards Ukraine or the Donbas. But I know that …
Kremlin: Russia might stop using US dollars in oil trade
Russian finance minister Anton Siluanov did not rule out the possibility of using national currencies instead of the US dollar, he said on Sunday, August 12 on Russian TV. "We should build our policy considering the possible risks that arise from the actions of our American partners,” he stressed.
The First Deputy Prime Minister also said that Moscow has significantly reduced investments in American assets and gold and foreign currency reserves and will continue this policy in the future. At …
Kremlin refuses to save Russian ruble
The ruble’s latest collapse will not force the Russian government to stop buying foreign currency on the Moscow Exchange, the Central Bank of Russia warned.
The dollar’s 3.6 and the euro’s 2.8 ruble spike are “the market’s natural reaction” to the threat of new sanctions, and currency interventions, during which the Finance Ministry has already bought more than $30 billion and plans to buy another $6 billion in August, will continue, the regulator said in a statement released on Friday.
US prepares sanctions against Russian state banks
In addition to the sanctions against Russian government debt, which promise to cause foreign investors to flee Russia and drive the ruble even lower, US senators have prepared a powerful blow to the Russian banking system.
A virtually unnoticed provision in the new bill to expand the sanctions proposes new strict restrictions on Russia’s largest state banks, finanz.ru reports.
This provision may in fact cause more tangible damage to the Russian economy than the restrictions pertaining to …