Nearly six months after the start of the war in Ukraine, Russia says it will partially reopen its bond market but only for “countries that are not hostile.”
The move will exclude many of the country’s largest investors who have been slapped with sanctions in response to their alleged complexity in the Ukraine War.
Russia closed it stock and bond market just hours after Russian tanks rolled into Ukraine on February 24 of this year.
The Moscow Exchange said that starting Monday, it will allow “non-resident clients from countries that are not hostile, as well as non-residents whose ultimate beneficiaries are Russian legal entities or individuals,” to make transactions on the bond market.
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The Moscow Exchange said banks, brokers, and management companies started registering their foreign clients earlier this month.
“Hostile” countries that remain banned from selling Russian securities include members of the European Union, Canada, and Japan, which accounted for some 90% of investments in Russia in 2021.
Several Wall Street banks have started to offer to facilitate trades in Russian debt, allowing investors to get rid of assets viewed as toxic in the West, according to bank documents seen by Reuters.
In June, the Treasury Department banned US investors from buying any Russian security as part of economic sanctions levied against Moscow for its war on Ukraine. This ban prompted most US and European banks to pull back from the market.
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After the Treasury released guidelines in July allowing US holders to wind down their positions, the largest Wall Street banks have returned to the market for Russian government and corporate bonds.
FOX Business’ Landon Mion contributed to this report.