So Treasury Department says Russia is too big to sanction?
So Treasury Department says Russia is too big to sanction?
Treasury Warns of Upheaval If U.S. Adds Sanctions on Russia Debt
By Erik Wasson
and Saleha Mohsin
February 2, 2018
*Investors interpret as signal Trump wont target Russia bonds
*Report is one of three ordered by Congress on Russia sanctions
The U.S. Treasury Department warned that Russias sovereign debt market is too important to sanction without risking global financial turmoil, signaling the Trump administration is wary of targeting it for penalties.
A Treasury report obtained by Bloomberg concluded that expanding sanctions to new Russian sovereign debt and derivatives could destabilize markets and spread beyond Russia to have negative spillover effects into global financial markets and businesses.
Investors interpreted the findings as indicating that the U.S. has taken debt market penalties off the table despite pressure from Congress for additional sanctions on Russia for its meddling in the 2016 presidential election.
The bond market has concluded that if restrictions would harm American and European investors, sanctions wont be implemented, said Maxim Cherenov, head of fixed income trading at Asian Pacific Pank PJSC in Moscow. Its good news.
More:
https://www.bloomberg.com/news/articles/2018-02-02/treasury-warns-of-widespread-effects-of-russian-debt-sanctions