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The European Union has urged banks to refrain from placement of Russian bonds

Евросоюз призвал банки воздержаться от размещения российских облигаций

The European Union (EU) after the United States has urged banks to refrain from placement of Russian bonds, writes The Financial Times citing sources. Such recommendation was given in support of anti-Russian sanctions.

Despite the fact that the restrictive measures imposed by the EU, is not directly prohibit the purchase of Russian securities, in Brussels believe that the funds can be used for another purpose, the newspaper notes. “Obviously, they (EU authorities — approx. “The tape.ru”) don’t want us to have participated in the placement of Russian bonds. We do not recommended,” said a banker familiar with the warnings of Brussels.

It is also noted that if the recommendation will convince European banks to abandon their Russian bonds, then Moscow will be forced to abandon its first attempt to enter the capital markets after the reunification of the Crimea with Russia in 2014, reports TASS.

The state Department confirmed the information that are working with business in the US, the EU and worldwide to convince the company not to do business with Russia “as usual”. In Washington believe that “the return to doing business with Moscow has both economic and reputational risks”, said the representative of the American foreign Ministry. According to him, this is part of an overall strategy that includes “sanctions and a reduction in diplomatic communication”.

That the United States authorities have warned major banks from participating in the placement of Russian sovereign bonds, 25 February, reported the newspaper the Wall Street Journal. According to the publication, the state Department reported that “private companies in the U.S., the EU and the world should understand that Russia will remain a market with a high degree of risk” to stabilize the situation in Ukraine.

Russia, according to the publication, was invited to participate in the placement of its bonds on the European and Chinese banks, as well as a number of U.S. financial institutions, including Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase and Morgan Stanley.

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