Impact of foreign economic sanctions on the Russian market of bonds denominated in foreign currencies

Abstract

The market of Russian bonds denominated in foreign currencies was considered as the primary target for the initial package of the USA and EU economic sanctions in 2014. The analyses showed that, by the end of 2017, there was a significant reduction in the number of outstanding bond issues denominated in foreign currencies and a sharp increase in the bonds nominal volume evaluated in Russian rubles. The sanctions did not lead to a significant change in the structure of the market either from the standpoint of the number of bond issues denominated in foreign currencies or in terms of their nominal value. However, the number of foreign currencies in which bond issues were denominated was reduced from 11 to 6.