Brussels warns EU banks against placing Russian Eurobonds
The European Union fears that income from the Eurobonds will be received by Russians who are subject to sanctions. Earlier, a similar warning was issued by the White House.
The European Union appealed to European banks to discourage them from placing Russian Eurobonds as reported in the Financial Times on Monday, March 15th. According to European experts, money raised from the placement of these Eurobonds could be used by Russia "for other purposes," including as a source income for individuals who are under sanctions imposed due to the annexation of Crimea and the situation in eastern Ukraine. However, there is no explicit prohibition on the placement of the Russian Eurobonds. Should the warning be heard by European banks, the Russian Federation might refuse to enter the loan market.
Earlier, the same warning was given to U.S. banks by the U.S. Administration. Washington also believes that the purchase of Russian debt may be contrary to the sanctions policy.
Russian Deputy Finance Minister, Sergei Storchak, said that a sufficient number of banks have shown interest in the placement of the Eurobonds. At the same time, Presidential Aide, Andrei Belousov, expressed doubt that the U.S. Government's position will have an impact on the possible placing and cost of Russian Eurobonds.
The last time the Russian Federation sold securities on the international market was in 2013. At that time, Russia sold securities worth $6 billion, which will mature in 2019, 2023 and 2043, respectively. In February 2016, Moscow sent applications for the possible placement of Eurobonds to a number of foreign banks.