US and Europe allow dealings in Russian bonds

Washington/Moscow: Western countries imposed heavy sanctions on the Russian economy after the start of the Russia-Ukraine conflict. The objective was to stop the conflict by rocking the Russian economy via economic and other sanctions. But instead of Russia, the West started feeling the jolts of these sanctions. Therefore, Western countries have started withdrawing or easing these sanctions against Russia. It has come to light that the United States also has relaxed restrictions on Russian bonds and it has been revealed that the leading European banks and the United States have once again started transacting in Russian bonds.


In June, the US Treasury Department imposed restrictions on investing in the Russian government and private debt securities. Internationally, the value of Russian bonds is worth about $40 billion, of which Western banks and investors hold about 50%. Transactions in all these bonds were halted given the US sanctions. This hit foreign banks as well as investors. At the end of July, the US Treasury Department decided to ease bond transaction restrictions without fanfare.

Since then, leading private banks in the US and Europe have again started dealing in Russian bonds. These banks include ‘JP Morgan Chase’, ‘Bank of America’, ‘Citigroup’, ‘Jefferies Financial Group’ and European financial institutions, ‘Deutsche Bank’ and ‘Barclays’. News agency Reuters reported that these banks have resumed trading in Russian bonds. The news agency said that the financial institutions deal with transactions in Russian bond investment on a case-to-case basis. Sources informed that after the resumption of these transactions, the rates of Russian bonds have started increasing again and their demand is also growing.

Meanwhile, information has come to light that Kingdom Holdings, a leading company in Saudi Arabia, a prominent country in the Middle East, is investing in Russia. During the Russia-Ukraine conflict, Kingdom Holdings invested billions of dollars in Russian companies. The ruling regime of Saudi Arabia holds more than 18% of the company.

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