Economics
U.S. Influence Sapped Demand for Russia Eurobond, VTB Chief Says
- Russia still talking to Euroclear to allay settlement concern
- Secondary-market appetite may pave way for a follow-up sale
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The chief of Russia’s state-appointed bond organizer blamed political interference from the U.S. and Europe for curtailing demand for the government’s first bond sale since being hit with sanctions two years ago.
Foreign investors including Aberdeen Asset Management Plc and Allianz Global Investors Europe GmbH in London decided not to buy the bonds due to concerns they would struggle to trade the debt because the deal isn’t eligible for settlement on Euroclear Bank SA, the main depository for the Eurobond market. The $1.75 billion bond sale compares with a budgeted $3 billion of foreign issuance this year.