Russian finance ministry announces measures in light of US sanctions
In response to US sanctions on Russia's sovereign debt, the Russian Ministry of Finance has announced measures that it said will ensure the stability of its access to debt markets.
The ministry said it has enough money available — more than 4.5 trillion rubles (around $56 billion) — to ensure that it can be flexible in borrowing money and selling new government debt. In the coming weeks, Russian government bond auctions will be restricted and will take into account the market situation, it added, reports CNN.
The ministry's reserves are more than double the planned net borrowing for 2002 of 2.2 trillion rubles ($27 billion), and it also said that the measures along with those taken by the Russian central bank on Tuesday will "facilitate a smoother adaptation" to the sanctions.
Keep updated, follow The Business Standard's Google news channel
On Tuesday, the Russian Central Bank said it would ease rules for banks, allowing them to use the exchange rate of 18 February — before the big falls in the Russian market — when calculating their financial positions. Financial institutions are now also allowed to report shares and bonds at market value as of 18 February.
"The Ministry of Finance of Russia, together with the Bank of Russia, will continue to closely monitor the situation in the financial markets and, if necessary, will take additional measures to strengthen financial stability," the finance ministry said.
US President Joe Biden yesterday laid out what he called a "first tranche" of US sanctions against Russia for its moves, including on two large financial institutions, Russian sovereign debt and Russian elites and their family members. He said the moves would effectively "cut off Russia's government from Western finance."
The United Kingdom, European Union, Canada, Australia and Japan also announced fresh sanctions on Russia.
Earlier in the day, Germany said it halted certifying a $11 billion 750-mile pipeline that connects Russia directly to Germany. The Nord Stream 2 project was completed in September but has not yet received the final green light from German regulators.
