US House of Representatives approves a ban on trading Russian bonds on the secondary market

The House of Representatives of the US Congress unanimously supported the ban on the purchase or sale of new issues of Russian bonds by American investors in the secondary market. Bloomberg reports.

The author of the amendment, California Congressman Brad Sherman, called the reason for the introduction of new restrictions on Russia’s interference in the American elections.

The ban will include bonds in any currency issued by the Central Bank of Russia, the National Welfare Fund and the Federal Treasury of the Russian Federation, with a maturity of 14 days. 

The ban was approved as an amendment to the defense budget for FY2022, which begins October 1. The overall budget is expected to be passed by the House of Representatives at the end of the week. After that, as noted by TASS, a commission will be convened, which will have to agree on the versions of the budget approved by the House of Representatives and the Senate, and then there will be a final vote for the agreed document.

The current sanctions against Russian government debt prohibit American companies from directly purchasing Russian government bonds on the primary market. They were introduced by US President Joe Biden in mid-April due to Russia’s “malicious foreign activity”. 

(C)MEDUZA 2021

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