1/ Russia's sovereign debt (presumably new) is sanctioned. No more access to the US/EU markets. What does it mean?
Russia's government is in fiscal surplus, apart from the rollover of debt, Russia is "overfunding" borrowing when strictly speaking it does not need to.
2/ Foreign participation fell in Russian market due to sanctions concerns. Russian domestic banks stepped in to buy more of the additional issuance.
3/ Non-residents have been leaving the market since the beginning of hostilities.
4/ Russian sovereign debt continues to make up a substantial share of local currency emerging market indices such as the GBI. While Russia’s weight has declined in recent years (to 7.5%), this is largely a result of the inclusion of Chinese bonds since early 2020.
5/ Roughly $64 bn of debt is held by foreigners. Including in the Eurobond market.
6/ Russia's banks' liquidity surplus of $11bn is smaller after COVID relative to the total FX holdings $64 bn, but still can go a long way to accommodate foreign investor exit. The @bank_of_russia can also provide liquidity support as needed.
@bank_of_russia 7/ Russia also has reserves (including gold, US$, EUR, CNY) in excess of US $630 bn
8/ Full text of the US sanctions announcement here
home.treasury.gov/news/press-rel…
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