The latest of a steady stream of
sanctions imposed by the US government on Russia will cause
little in the way of a material impact to the country's
sovereign debt market. This is despite new restrictions that
prevent US banks from participating in the
non-ruble-denominated Russian sovereign markets.
The sanctions may sound threatening and appear to be an
imposition of power from the Trump administration. However, it
is arguably an example of the White House making a political
move that may look and sound like a display of strength against
the Russians – but is, in reality, only preventing US
financial institutions from making investments they had already
been steering clear of for some time. Sources are calling it a
case of smoke and mirrors.
"Russian eurobond issuances have been a tough market anyway.
US banks have already stepped away from lead roles," said a
source close to the issue who...