Most European banks have decided to accept the US advice and avoid buying Russian bonds. The US government is supported by Belgium that also recommends not to participate in a bond sale. According to an unofficial statement, the European and US banks are warned that Russia uses bonds to attract foreign capital. Moreover, in case of success, the Russian authorities can channel funds to companies on the sanctions lists.
Russia still has a right to arrange the bond sale as the sanctions are imposed against a few large companies and some individuals. Thus, the raised money can be funneled to the sanctioned companies. As a result, all Western actions will lose their bite.
The US and EU can only advise banks not to take part in the deal. Many European banks have ruled themselves out of participating in a bond sale unwilling to upset the US and European authorities. The US largest banks, including Goldman Sachs and JP Morgan, that at first showed their interest in cooperation with Russia, have changed their position.
