The United States announced new sanctions against Russia in mid-April. The new restrictions, in particular, prohibit American financial institutions from buying Russian government bonds during the initial offering. However, they will still be able to buy and sell Russian government bonds on the secondary market.
In fact, the ban introduced in 2019 for American investors on the purchase of new issues of Russian government Eurobonds is being expanded. At the same time, it applies to purchases of federal loan bonds (OFZ) at primary auctions held by the Russian Ministry of Finance. Since then, Russia has twice entered foreign borrowing markets with Eurobonds denominated in euros.
The Ministry of Finance has already announced that after June 14 it will place only new OFZ issues, refusing to place additional placements of previously registered series of government bonds in order to minimize the risks of forced sales of government securities by individual foreign investors.
The ministry has already approved three new issues of government bonds worth 500 billion rubles each. The start date of the placement of bonds is June 16, respectively, from this date they will be available for offering at the auctions of the Ministry of Finance. In the near future, they will be registered and will become available for purchase at auctions of OFZs of other types and maturities, the ministry said.
A new round of US sanctions will not affect the borrowing strategy, Finance Minister Anton Siluanov said earlier. According to him, the ministry has already incorporated American restrictions into its borrowing strategy. The sanctions are unpleasant, but not fatal stressed the head of the Ministry of Finance.
Russian national debt is one of the most reliable and low-risk in the world, the demand for it will remain high despite the US sanctions, which bear lost profits to American financial institutions, Siluanov pointed out.