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Sputnik: US banks decline to confirm return to Russian bond trade

By Al Mayadeen English
Source: Agencies
18 Aug 2022 23:45
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After information revealed that US banks have returned to Russian bonds trading for asset disposal following US Treasury guidelines to avoid anti-Russian sanctions, Sputnik sought to confirm the information but most banks declined to comment.

Russian Ruble and US Dollar banknotes (Reuters)

Several big US banks failed to disclose to Sputnik if they had restarted trading in Russian bonds following a suspension due to fears about breaking anti-Russia sanctions.

Earlier, on Monday, August 15, Reuters reported obtaining bank documents revealing the fact that many big Wall Street banks have recently begun offering to arrange deals in Russian debt, providing investors another opportunity to dispose of Russian assets.

Large Wall Street firms have cautiously returned to the market for the Russian government and corporate bonds after new Treasury guidelines, subsequently released in July, permitted US holders to tone down their positions. This information was obtained by Reuters via emails, client notes, and various contacts from six banks.

"We'll decline to comment," a JP Morgan spokesperson told Sputnik on Thursday.

Bank of America, Wells Fargo, The Office of Foreign Assets Contro, as well as Legal and General also declined to confirm whether they are facilitating the trading of Russian bonds.

The US Treasury Department banned US investors from Russian security purchases back in June as part of an economic sanctions package against Russia.

When Russia began a military operation in Ukraine, there was about $40 billion in Russian sovereign debt available on the market, with approximately half owned by foreigners, according to the Financial Times.

According to Reuters, the banks' approaches to the US Treasury guidelines differ. While some are providing customers assistance in divesting their holdings as well as other forms of trading that would minimize exposure to Russian assets in certain situations, others limit trades to asset disposals alone.