With the approval of the U.S. Treasury Department, a number of major Wall Street banks have begun to resume services for Russian bond trading in recent days, giving investors the opportunity to deal with what is generally regarded as “toxic” in the West, according to bank documents obtained by Reuters. asset.
After Russia invaded Ukraine, the U.S. Treasury Department imposed economic sanctions on Russia, including a ban on U.S. investors from buying any Russian securities. Major Wall Street banks withdrew from the Russian market in June in response to government policies.
Wall Street’s big banks have cautiously returned to Russian government and corporate debt markets after the U.S. Treasury Department in July allowed U.S. holders to reduce their holdings, according to sources including emails, customer records and other communications from six banks.
Banks that have restarted Russian bond trading include JPMorgan (JPM-US), Bank of America (BAC-US), Citigroup (C-US), Deutsche Bank, Barclays and Jefferies, the documents show.
Russia’s central bank slashed interest rates by 150 basis points last month to 8 percent, already below pre-war levels, in response to a stronger rouble and averting a potential recession. The central bank also said it was working with the government to set price benchmarks for many commodities, including crude oil, so that the West would not have the power to set prices.
Elvira Nabiullina, governor of the central bank, said the rate cut took into account the strength of the ruble, falling prices and slowing inflation expectations.
