Sunday 11 May 2014

Russia Sanctions Throw Up Hurdles for Bond Investors | News | The Moscow Times

Russia Sanctions Throw Up Hurdles for Bond Investors | News | The Moscow Times:



"Confusion over the legal implications of sanctions on Russia and worries about further, harsher restrictions from the West are making investors cautious about owning bonds issued by Russian companies.



Two rounds of U.S. sanctions on Russian individuals and companies, in March and April, have not directly affected any companies which issue publicly traded debt. EU sanctions are regarded as even lighter.



Sanctions imposed so far on individuals such as Igor Sechin, chief executive of Rosneft, do not directly target the company, because Sechin does not own a controlling stake in the firm.



But worries about how the sanctions might be implemented have triggered a selloff in the debt of Rosneft as well as that of Novatek and Russian Railways, where sanctioned individuals hold noncontrolling stakes."



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