United State Sanctions: Who Will Be Affected By New Restrictions - WritenAreGiven

United State Sanctions: Who Will Be Affected By New Restrictions

Share This

United State sanctions: who will be affected by new restrictions. The United States explained the use of new anti-Russian sanctions that impose restrictions

United State Sanctions: Who Will Be Affected By New Restrictions



  • The United States explained the use of new anti-Russian sanctions that impose restrictions on the participation of US banks in the primary market of Eurobonds of the Russian Federation. Earlier it became known about the decision of the United States to introduce a second package of anti-Russian sanctions because of the Skripale case. Sanctions will come into force on August 19.


  • The US Treasury issued a directive that clarifies the use of new sanctions against Russia's sovereign debt.


  • New US sanctions impose restrictions on the participation of US banks in the primary market of Eurobonds of the Russian Federation, but they will affect state-owned companies, as well as the secondary market of sovereign debt. Such explanations were provided by the Office of Foreign Assets Control (OFAC) of the US Treasury.


  • New US sanctions impose restrictions on the participation of US banks in the primary market of Eurobonds of the Russian Federation, but they will affect state-owned companies, as well as the secondary market of sovereign debt. Such explanations were provided by the Office of Foreign Assets Control (OFAC) of the US Treasury.


  • United State sanctions: who will be affected by new restrictions. The United States explained the use of new anti-Russian sanctions that impose restrictions

“The Directive prohibits US banks from participating in the primary market of ruble-free sovereign debt obligations of Russia, as well as non-ruble debt financing by US banks”,


- reported in the Ministry of Finance.

  • In addition, as part of the restrictions imposed, the United States opposes "the provision of loans, as well as financial or technical assistance to Russia by international financial institutions, such as the World Bank or the International Monetary Fund ."


  • According to the explanations, sovereign debt is debt securities issued by the Ministry of Finance of the Russian Federation and other ministries, as well as by any agency or sovereign fund of the Russian Federation, the Central Bank of the Russian Federation. At the same time, sovereign borrowers do not include state-owned companies, as indicated in the directive.


  • Thus, Russia will not be able to attract US banks to place Eurobond currency bonds. For purchases in the secondary market, these restrictions apply.


  • New sanctions apply not only to classic US banks but also to investment companies, clearing and trust companies, brokers and securities dealers, commodity futures and options dealers, currency traders and so on. In addition, restrictions apply to foreign branches of US banks, as well as to subsidiaries of foreign financial institutions in the United States.

Sanctions restrict Russia in issuing new Eurobonds in US dollars, because dollar payments pass through a correspondent bank, and banks cannot participate in the primary placements of the Russian currency government securities.

  • On August 1, US President Donald Trump signed a decree introducing the second stage of sanctions against Russia for the incident in Salisbury. The decree concerns the procedure for the introduction of restrictive measures against a country that has violated the American Chemical and Biological Weapons Control Act and the prohibition of its use of 1991.


  • The same law became the legal basis for the introduction of the first package of sanctions against Russia in the “Skripale case” at the end of August 2018.


New sanctions will be valid for at least a year.

  • “Sanctions can be lifted only after this 12-month period if the executive branch establishes and certifies the congress that Russia has fulfilled a number of conditions,” which are specified in the United States Chemical and Biological Weapons Control Act and Prohibition of 1991 year, drew the attention of the State Department representative.


  • In particular, in order to lift the sanctions, Moscow must "provide reliable guarantees that it is not preparing to use chemical weapons." In addition, the Russian side should assure the United States that it will not use chemical weapons in the future, and also "allow international inspectors to verify these assurances."


  • Also, to remove restrictive measures, as stated in the State Department, Russia must make "compensation payments to victims of the attack in Salisbury."


First Deputy Prime Minister, Minister of Finance Anton Siluanov said that

You may also like


Russia can safely do without US loans and companies and the budget can meet the demand for borrowed resources in the domestic market.

According to him, the Russian economy in recent years has proved its resistance to external constraints.

The official representative of the Russian Foreign Ministry Maria Zakharova said that despite the "blatant provocation" in the case of the poisoning of Skripal incident for a second time is used as a pretext for anti-Russian sanctions.

“The US authorities have long restricted their banks in issuing loans and hindering Russia's interaction with international financial development institutions, as well as blocking the sale of many technologies and goods. There is nothing particularly new about this. ”

- said Zakharova.

  • The Russian Embassy in London indicated that the charges without evidence and evidence led to the imposition of sanctions. The British authorities did not submit the results of the official investigation in Salisbury, the embassy said.


  • In early March 2018, the former GRU officer Sergey Skripal and his daughter Yulia were found in serious condition in British Salisbury. Former British Prime Minister Theresa May said that Skripali was poisoned by the newcomer nerve agent developed in Russia. Moscow denied these accusations.


  • The new head of the British Foreign Office, Dominic Raab, said that the ministry welcomes Washington’s introduction of a new package of sanctions against Russia in connection with the Skripale case.

No comments:

Post a Comment

Like a Reply