US not to expand sanctions against Russian sovereign debt market

Russia-US2.jpgIn accordance with section 242 of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA), the US Treasury has issued a Report addressing the potential effects of expanding sanctions under Directive 1 (issued by Executive Order 13662) to include new Russian sovereign debt and related derivative products.

The Report – which is not a binding sanctions decision – concludes: “given the size of Russia’s economy, its interconnectedness and prevalence in global asset markets, and the likely over-compliance by global firms to U.S. sanctions, the magnitude and scope of consequences from expanding sanctions to sovereign debt and derivatives is uncertain and the effects could be borne by both the Russian Federation and U.S. investors and businesses.”

Consequently, during a hearing of the US House Financial Services Committee yesterday, the Treasury Secretary Steven Mnuchin announced that the US would not be expanding its sanctions against Russia’s sovereign debt and derivatives market.

This entry was posted in Russia, USA by Maya Lester QC. Bookmark the permalink.

About Maya Lester QC

Maya Lester QC has a wide ranging practice in public law, European law, competition law, international law, human rights & civil liberties. She has a particular expertise in sanctions. As the most recent (2016) Chambers & Partners directory put it, she "owns the world of sanctions". She spent 2011-12 in New York at Columbia Law School lecturing and writing on sanctions. She represents and advises hundreds of companies and individuals before the European and English courts and has acted in most of the leading cases, including Kadi, Tay Za, Central Bank of Iran, NITC and IRISL.

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