New US sanctions against Russia may affect sovereign debt, writes The New York Times, citing a source.
The publication reports that the new measures against Moscow should be more effective than “previous attempts to punish Russia for interference in the elections.”
According to informed interlocutors of the newspaper, “the sanctions will be directed against the country’s sovereign debt.”
Russia’s sovereign external debt is only $ 56.6 billion as of March 2021. Russia’s external debt is one of the smallest in the world and amounts to no more than 20% of the country’s GDP. Russia can close its debt obligations quite quickly and painlessly. Possible restrictions may have an impact due to the actual restrictions on investment in the Russian economy in the form of purchases by foreign companies and government debt securities of Russia.
Earlier, Bloomberg, citing a source, also reported on the impending US sanctions against Russia, including against diplomats.
In March, Russian Minister of Economic Development Maxim Reshetnikov noted that possible sanctions against the Russian national debt would hit primarily the interests of Western investors.
In December 2019, the US Chamber of Commerce spoke about the damage that could be done to American companies if Washington approves sanctions against Russia’s sovereign debt.