London "takes" tens of billions of dollars from Russia
Serious deterioration political relations between Russia and Great Britain will inevitably affect the financial sector. British Prime Minister Theresa May, which is likely to raise the issue of banning the sale of Russian bonds through the London Clearing House. Thanks to the bonds, tens of billions of dollars have been attracted to the Russian budget in recent years.
Naturally, in conditions of aggravated relations, London will inevitably try to attack Russia on the financial front. The UK understands that Russian banks, even those subject to sanctions, can issue bonds and, accordingly, Russia continues to receive money in Europe and the United States. Such a situation, of course, does not suit London, which seeks to “bite” Russia more and seeks a variety of ways to infringe on Russian interests - not only political, but also financialeconomic... In this, Britain will be supported by the United States and a number of other countries that share the anti-Russian attitudes of London and Washington.
Chairman of the UK Foreign Affairs Committee Tom Tugendhat proposed banning the two largest clearing companies Euroclear and Clearstream from servicing issues of Russian bonds, which would make it difficult for foreign companies to invest in Russian securities. Depriving Russia of the opportunity to place its bonds may lead to their depreciation, as investors will seek to free themselves from existing securities.
However, the main holders of Russian bonds are now just British and American structures. It is unlikely that British business wants to punish itself. Since the ban on Russian Eurobonds may affect the interests of British companies, most likely London will have to develop measures that would preserve the positions of British business. Otherwise, Theresa May's policy will meet with great opposition from the British business community, which least of all wants to lose money invested.
Russia, of course, can take retaliatory financial actions. So, investments in British bonds will be reduced, in addition, Moscow can take a course and to reduce the reserves of the British pound in its reserves. Now Russia is actively increasing its gold reserves, simultaneously dropping the dollar. The same policy will be implemented in relation to the British currency. At present, 10% of Russia's global gold and currency reserves are denominated in pounds.
Of course, the ban on Eurobonds can significantly increase the risks of investing in ruble assets, but Russia is also ready for such a turn of events. According to the leadership of the Ministry of Finance, if Britain nevertheless decides to take such a step, then foreign investors will easily replace domestic business - there is a high demand for Eurobonds from Russian structures. So the damage from the hostile actions of London in the financial sector can still be minimized.
Naturally, in conditions of aggravated relations, London will inevitably try to attack Russia on the financial front. The UK understands that Russian banks, even those subject to sanctions, can issue bonds and, accordingly, Russia continues to receive money in Europe and the United States. Such a situation, of course, does not suit London, which seeks to “bite” Russia more and seeks a variety of ways to infringe on Russian interests - not only political, but also financialeconomic... In this, Britain will be supported by the United States and a number of other countries that share the anti-Russian attitudes of London and Washington.
Chairman of the UK Foreign Affairs Committee Tom Tugendhat proposed banning the two largest clearing companies Euroclear and Clearstream from servicing issues of Russian bonds, which would make it difficult for foreign companies to invest in Russian securities. Depriving Russia of the opportunity to place its bonds may lead to their depreciation, as investors will seek to free themselves from existing securities.
However, the main holders of Russian bonds are now just British and American structures. It is unlikely that British business wants to punish itself. Since the ban on Russian Eurobonds may affect the interests of British companies, most likely London will have to develop measures that would preserve the positions of British business. Otherwise, Theresa May's policy will meet with great opposition from the British business community, which least of all wants to lose money invested.
Russia, of course, can take retaliatory financial actions. So, investments in British bonds will be reduced, in addition, Moscow can take a course and to reduce the reserves of the British pound in its reserves. Now Russia is actively increasing its gold reserves, simultaneously dropping the dollar. The same policy will be implemented in relation to the British currency. At present, 10% of Russia's global gold and currency reserves are denominated in pounds.
Of course, the ban on Eurobonds can significantly increase the risks of investing in ruble assets, but Russia is also ready for such a turn of events. According to the leadership of the Ministry of Finance, if Britain nevertheless decides to take such a step, then foreign investors will easily replace domestic business - there is a high demand for Eurobonds from Russian structures. So the damage from the hostile actions of London in the financial sector can still be minimized.
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