The US is studying the possibility of tougher sanctions against Russia’s debt obligations

According to the agency, the administration of US President Joe Biden may prohibit American companies from buying Russian debt not only on the primary but also on the secondary market.

This was reported on Saturday by Bloomberg, citing sources.

According to them, the White House continues to study the impact of the new package of restrictions imposed on the Russian Federation last Thursday. At the same time, the Biden administration is “preparing to tighten these restrictions” if the Russian authorities “do not stop hacking attacks and attempts to interfere in the US political process,” Bloomberg reports. As one of the possible measures, the agency’s sources call the expansion of sanctions against Russian debt obligations in such a way as to prohibit American companies from buying them not only on the primary but also on the secondary market.

The agency notes that the ban may apply to trading in Russian securities for at least the first 90 days after their issuance. At the same time, according to Bloomberg sources, the decision to tighten restrictions will be made as the previously imposed sanctions affect the position of the ruble and Russian securities on world markets.

Last Thursday, Biden signed a decree on sanctions against Russia. Washington, in particular, banned American companies from directly buying debt issued by the Central Bank, the National Welfare Fund, or the Ministry of Finance of the Russian Federation. At the same time, the ban applies to Russian debt securities only on the primary market and does not affect the secondary market.

16 organizations and 16 individuals were sanctioned for their links to Moscow’s alleged interference in the US election, and eight citizens and legal entities were sanctioned for their work in Crimea. Also, Washington will send 10 diplomats, whom the United States considers “representatives of Russian intelligence services.”

The President of the Russian Federation, Dmitry Peskov, said that Moscow would act in relations with Washington, which imposes sanctions, guided by the principle of reciprocity. According to him, the new US restrictions will not contribute to the meeting between Vladimir Putin and Biden, which Washington proposed.

Author: Steve Cowan
Graduated From Princeton University. He has been at the Free Press since October 2014. Previously worked as a regional entertainment editor.
Function: Chief-Editor
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