Despite the imposed sanctions, Russia’s authorities managed to attract foreign capital.
After the US and EU introduced an array of sanctions against Russian individuals and businesses, Russia became almost isolated from the Western financial markets. Against this background, the Russian government has decided to issue 10-year bonds worth $3 billion. Russia has all chances to go ahead with the plan and in this case Western sanctions will lose their bite. Russia still has a right to arrange a bond sale as the sanctions are imposed against a few large companies. The country has already invited some Chinese, European, and American banks, including Goldman Sachs, Morgan Stanley, and Bank of America, to participate in the bond sale.
In case of success, the Russian authorities can channel funds to companies on the sanctions list. The US and EU can only recommend their banks not to buy Russian bonds. The point is that according to US and EU legislation, the government cannot forbid companies to buy Russian bonds. Thus, Russia can benefit from their laws.
