Foreign holdings of Russian sovereign debt up

RUSSIA / FSU POLITICS - In Brief 30 May 2019 by Alex Teddy
The Ministry of Finance announced that foreign holdings of debt are sharply up in 2019. The total is over USD 50 billion in RUB and FX denominations. The risk of US sanctions has been reduced. The government is keen to make the most of this positive feeling. It is speculated that a new Eurobond will be issued by the end of 2019. The Ministry of Finance told Bloomberg their theory is that the more countries that hold Russia's debt then the less likely the US will be to impose sanctions.This is the best sovereign debt news for 5 years. But storm clouds remain. The US is mulling two new sanctions packages called DASKA and DETER. Future issuances of sovereign debt will be problematic if these bills pass. This threat does not seem to alter Russia's foreign policy.Last year foreigners withdrew more than USD 9 billion in RUB denominated bonds due to sanctions. Blackrock and California State Pension Fund have billions in Russian debt. The US knows that by hurting Russia it hurts itself.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.