U.S. Could Move to Sanction Russia Derivatives, Short-Term Funds - Bloomberg

U.S. Could Move to Sanction Russia Derivatives, Short-Term Funds - Bloomberg:



"The U.S. might move to limit derivatives trading and short-term loans with Russian companies if sanctions already imposed fail to sway President Vladimir Putin to end support for rebels in eastern Ukraine.



U.S. citizens and businesses are still permitted to trade in outstanding debt of any maturity and new short-term debt and derivatives with sanctioned Russian companies. Restrictions on money-market financing and derivatives could be imposed if tougher penalties are necessary, said a Treasury Department official who asked not to be named because further options are still being discussed.



The U.S. has carefully calibrated a ban on certain transactions with Russian companies including VTB Group, OAO Novatek (NVTK), OAO Rosneft and OAO Gazprombank, to squeeze Putin while avoiding collateral economic disruptions in Europe and the U.S. That approach leaves room to intensify the sanctions regime, the Treasury official said in an interview with Bloomberg News yesterday."



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