Bloomberg learned about the refusal of two US banks from operations on Russian government debt

JPMorgan Chase and Goldman Sachs will not conduct operations on Russian debt obligations after a corresponding instruction from the US Treasurywrites BLOOMBERG.In May, the agency did not renew the license to service the debt

Major American banks JPMorgan Chase and Goldman Sachs have suspended operations with Russian debt after the US authorities banned the acquisition of these assets by American investors, Bloomberg writes citing sources.

The interlocutors of the agency said that in June both organizations were still operating in this area with interested buyers, but JPMorgan decided to abandon these operations after a ban by the Office of Foreign Assets Control of the US Department of the Treasury (OFAC). The termination of transactions was also reported to Bloomberg by a representative of Goldman Sachs.

"In line with OFAC's updated guidance and the phasing out of Goldman Sachs' activities in RUSSIA, the company will no longer conduct certain market generating operations with Russian entities," Goldman Sachs said in a statement.

The tightening of financial transactions on Russian government debt, adopted by the US Treasury in early June, was unexpected for market participants, the agency writes, since Washington had previously allowed operations on it. Now participants in the US market are prohibited from acquiring both new and already issued debt and issue-grade securities of the Russian government debt, Bloomberg points out.

The United States banned Russia from servicing external public debt Economics

The US authorities in May did not renew the license that allowed holders of Russian sovereign bonds in dollars to receive payments for the redemption and servicing of these securities.

The Russian Ministry of Finance then announced that bondholders would be asked to receive settlement "bypassing foreign infrastructure." “While these proposals are being prepared. But we will maintain the image of a reliable borrower and fulfill our obligations even taking into account the restrictions imposed by Western countries,” Minister Anton Siluanov emphasized.

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Siluanov explained Russia's desire to avoid default

The Kremlin previously believed that the measures of the United States and other Western countries are aimed at "artificial default" of the Russian economy. The representative of the Russian President Dmitry Peskov stressed that the conditions for a default in Russia "are not even close." “Theoretically, of course, some kind of default situation can be organized, but this is a purely artificial situation,” he said.

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