INSUBCONTINENT EXCLUSIVE:
What Sanctions On And By Russia Mean?
Russia's invasion of Ukraine has led to severe
economic sanctions and a huge reaction from the corporates working in Russia
Here is a look at the Western countries sanctions on Russia in reposnse to what Moscow calls a "special operation" in Ukraine
The Russian energy sector faces embargo sanctions by the US and other countries
The ban on imports could be imposed on selected companies in order to smooth market stress.Assets of Russia's Central Bank Reserves were
frozen by the Group of Seven Countries, the largest state-owned banks were cut off from SWIFT , and numerous individuals including some
Russian banks might be cut off from SWIFT (the UK's proposal).Around 200 commercial companies are going to suspend, divest or cut off any
ties with Russia.Among the 'great exodus' of commercial business from Russia, Russian issuers lost their presence in global indices as
Moody's cut Russia's rating to 'Ca' from 'B3'
S-P assigned ''CCC-.The market has started talking about technical default
Russia's Credit Default Swaps (CDS) - an insurance against a default, rocketed to near 3,000 basis points compared to 125 basis poiints at
There is a high probability that investors in various locations will not receive debt payments/coupons which is likely to be considered as a
default.Future payments on eurobonds are in question
Key index providers called the Russian segment 'currently uninvestable' and announced plans to exclude Russia from indices: S-P, MSCI and
impose capital controls that hit external debt payments
Russia may end its oil and gas exports although a wholesale stoppage is unlikely
Russia may shut down Nord Stream I in retaliation for the shelving of Nord Stream II, Russia's Minister of Energy has commented
Russia may shut down the export of base metals (aluminium, nickel, and/or other rare metals like titanium) or impose restrictions on
fertiliser exports.Last Saturday, President Putin allowed Russian borrowers to repay external debt only in ruble and only to investors in
jurisdictions that have not implemented sanctions on Russia
Payments to other investors will be accumulated in the special 'S-accounts' but will not be available.
