US Treasury Prohibits Investors From Buying Russian Debt
- New rule comes amid criticism of banks trading Russian bonds
- Meanwhile, Russia’s sovereign bond payments stuck at Euroclear
Pedestrians walk by Saint Basil's Cathedral on Red Square in Moscow, Russia.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
The US Treasury stepped up financial sanctions on Russia by barring investors from buying the country’s debt in the secondary market, bringing trading activity almost to a halt on Tuesday as investors scrambled to understand the new restrictions.
The updated guidance means US firms can hold or sell Russian debt, but can’t purchase it, according to a spokesperson for Treasury’s Office of Foreign Assets Control. The rules apply to both corporate and sovereign debt as well as equities.