Possible sanctions the United States will not be a disaster for the OFZ market, said the expert

© RIA Novosti / Maxim to Aminopherase in fotobanka of Federal bonds to private persons in one of the branches of Sberbank. Archival photoPossible sanctions the United States will not be a disaster for the OFZ market, said the expert© RIA Novosti / Maxim to Aminopherase the image Bank

Possible spread of U.S. sanctions on state debt of the Russian Federation will be a disaster for the bond market (OFZ), the chief of the securities division fixed income group Lombard Odier, Manuel Streiff.

«Although the news could not be called good, but the disaster is not the same. The vulnerability of Russian bonds is less than it was a few years ago, because Russia needs no buildup of external debt,» he told reporters.

The President of the United States Donald trump in August signed a law expanding the number of sectoral sanctions against the Russian economy. The document suggests that within six months (180 days) after its adoption, the US Congress will meet to discuss the possible expansion of restrictive measures on Russian debt.

According to the CBR, as of 1 October 2017, the share of non-residents on the OFZ market increased to 33.2%. First Deputy Chairman of the Bank of Russia Ksenia Yudaeva said on Tuesday that now the proportion is slightly lower, and roughly comparable to the level that was throughout the year. According to her, the possible US sanctions against the national debt of the Russian Federation may have a short term effect. If necessary, the Central Bank is ready to use their tools.

According to Streiff, in the case of sanctions may fall in the prices of the BFL in a few days, but then fairly quickly back to normal.

He also added that the quality of Russian bonds higher than what is reflected at the rating agencies because their ratings take into account the situation with the sanctions.

Possible sanctions the United States will not be a disaster for the OFZ market, said the expert© RIA Novosti, Infographicsrussia against Russia and international trade

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