A possible ban on the sale of Russian Eurobonds on the stock market of London cannot fail to damage the reputation of Britain in the eyes of investors. So the press Secretary of the President of Russia Dmitry Peskov commented on the proposal to ban Western for the leading clearing-houses maintenance of Russian government bonds, which has agreed to consider Prime Minister Theresa may.
“This is a very important substance, which concerns the overall image of the countries as a reliable economic partner”, — said Peskov. About the possibility of a ban of transactions with sovereign debt securities of Russia, the British authorities began to speak after clearing house of London helped one of the Russian banks under Western sanctions to sell Eurobonds in the amount of $4 billion London decided to eliminate the “loophole” in British law, allowing our financial institutions to circumvent economic restrictions.
According to the chief of analytical Department UK “BK-Savings” Sergei Suverov, the statement may, regarding the Russian Eurobonds, backed mostly by political, not economic circumstances. Russia’s foreign debt amounts to only few percent of the country’s GDP, whereas, for example, similar obligations of the United States, the components of $20 trillion, exceeds the size of the U.S. gross domestic product. In this regard, the loss of the British stock markets as the investment operator for circulation of sovereign bonds is unlikely to inflict a serious blow on the Russian Federal budget.
“Despite the fact that London stock exchange is considered the traditional site for placement of securities of Russian government debt, the Finance Ministry can refocus on Asian stock exchanges, primarily in Singapore. It is possible that the range of investors after the final positive decision of London on this point is somewhat thinned, but there is always the possibility of releasing large volumes of ruble-denominated compared to the currency of the bonds”, — said the expert.
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