The Treasury Department, in order to strengthen financial stability against the backdrop of US sanctions, will make decisions on the issuance of federal loan bonds (OFZ), taking into account market conditions. This is stated in the message of the ministry.
“In order to help strengthen stability in the Russian debt market, decisions on the need to hold OFZ auctions in the coming weeks will be made taking into account market conditions,” the ministry said in a statement. At the same time, the agency will place only new issues of government bonds in the near future to reduce the risk of forced sales by non-residents.
A significant amount of temporarily free funds in the single treasury account (more than 4.5 trillion rubles with net borrowings planned for 2022 – 2.2 trillion rubles) allows for a flexible approach to the placement schedule, the Finance Ministry said in a statement.
“The resumption of OFZ placement as the volatility of financial markets decreases may be accompanied by an increase in the share of instruments with a lower level of interest rate risk (duration), taking into account the structure of market demand,” the ministry said.
As stated in the department, the ability to temporarily not take into account changes in the current market value of securities will contribute to a smoother adaptation of financial markets to sanctions.
Due to the recognition of the DPR and LPR, anti-Russian sanctions were imposed by the United States, Great Britain, the EU, Canada, Japan and Australia. A number of Russian politicians and businessmen, five Russian banks fell under the restrictions, and Germany suspended the certification process for the Nord Stream 2 gas pipeline. At the same time, the West emphasizes that restrictive measures can be expanded and tightened.
Read more about the sanctions against Russia in the article “Kommersant” “Britain made the first move with sanctions.”