US sanctions against Russian government debt come into force

US sanctions, which prohibit US financial institutions to buy Russian government bonds at initial public offering, have come into force.

The restrictions announced by the United States authorities in April imply a ban on certain operations with the Russian sovereign debt. The American banks and other financial institutions are forbidden to buy bonds issued by the Bank of Russia, the National Welfare Fund (NWF) or the Ministry of Finance after June 14, 2021 in the primary market or to credit the above mentioned organizations.

This effectively extends the ban on U.S. investors, introduced in 2019, on the purchase of new issues of Russian government Eurobonds.