Treasury warns of wide impact if U.S. sanctions Russian debt

[Eugene]

Source: Reuters

#BUSINESS NEWS FEBRUARY 2, 2018 / 11:39 AM / UPDATED AN HOUR AGO

Treasury warns of wide impact if U.S. sanctions Russian debt

Reuters Staff

WASHINGTON (Reuters) - The U.S. Treasury Department said in a report submitted to Congress this week that expanding sanctions on Russia to include new sovereign debt would have “negative spillover effects” on global financial markets and businesses.

Given Russia’s large economy and deep connections to world markets, widening debt-related sanctions could hurt “both the Russian Federation and U.S. investors and businesses,” said the report, submitted to Congress on Monday and obtained by Reuters on Friday.

Russian government bonds, known as OFZs, rallied on the news of Treasury’s position. Investors in OFZ bonds, popular for their lucrative yields, have been on alert about new sanctions recently and have bought Russian debt for fear of losing access to it in the future.

While Treasury’s memo does not make any recommendation for or against future sanctions, the congressionally mandated report repeatedly cites the risk that expanded measures could harm U.S. investors.

-snip-

Read more: https://www.reuters.com/article/us-usa-trump-russia-sanctions/treasury-warns-of-wide-impact-if-u-s-sanctions-russian-debt-idUSKBN1FM24Q

[dewsgirl]

1. Because of course they did.

[blockquote

[ResIpsa]

2. Call it the...

war on the Homefront. Just another excuse. the markets can handle it. They have record profits and a bright shiny new tax cut. Rich folk have to pay for war too. If that's what it takes to kick Putin in the slats and out of our elections...so be it. Nothing is more precious than our Democracy and by extension....our votes.

[CentralMass]

5. + 1,000,000

[C_U_L8R]

3. Could it be? We smell a Butt Mnuch?

[Thedemby]

4. Russia's large economy.

Compared to the rest of the world, Russia "ain't much". And saying sanctions "could have" a negative effect?
I think tiny effect would be more accurate.

This sounds like trump toadies trying to make his ignoring the sanctions a good thing.

The only economy that would really be hurt is Trump's.

[CentralMass]

6. They are throwing the kitchen sink at this.