American companies again attracted the "big bad Russian capital market. This writes Kenneth Raposa in the article" What sanctions? JP Morgan and Goldman Sachs in the top-3 investment banks in Russia, "published on the website of the newspaper Forbes.
"If you look at the short term after the sanctions, the market looks quite strong," - said bne IntelliNews Nassof Jeffrey, vice president of Freeman author.
"Interestingly, we have even seen this year as Western banks were joined by some big deals - a few months ago, Goldman, Credit Suisse and Morgan Stanley led the IPO" Children's World. "
US investment banks have blocked access to the capital markets in the past year in connection with the sanctions against Vladimir Putin. Last year, Russia has returned to the bond market after two years of forced freezing due to US sanctions and the European Union, they studied the market demand. When the IPO and bond the window opened, Russian issuers have become wary of foreign organizers, fearing a fresh blow of sanctions. On the other hand, the US banks are also nervous.
Washington's sanctions against Russia were introduced in July 2014 years as punishment for Russia's support for the separatist movement that swept Ukraine. Sanctions very specific, but companies tend to remain very cautious, because those who have not complied with US sanctions, was forced to pay huge fines. BNP Paribas has been fined a record $ 8,9 billion. For banking transactions with Iran, then had been under US sanctions.
Existing US sanctions against Russian prohibit joint ventures in oil and gas exploration, including the financing of drilling and oil and gas exploration, as well as transactions in the technology sector.
The US also imposed sanctions against Russian banks, prohibiting US companies to receive money or lend money to banks in Russia, fall under the sanctions. VTB Bank, which owns the "VTB Capital", limited Washington's sanctions.
At the same time, the sanctions do not prohibit American organizations cooperation in other sectors of the economy, and consulting services. While much of this has to be interpreted by state courts, US firms are allowed to make deals with Russian companies, and those who did it, believe that they have not violated the sanctions rules. Now among them the two largest banks on Wall Street, and the one who is an integral part of the Trump administration.
Sources in the oil and gas industry in Russia, as well as in financial services, said that the former adviser Trump Paige worked with "Gazprombank" as one of the mediators in the deal with "Rosneft" to sell the state-owned "of Glencore" class of shares of companies and sovereign wealth funds of Qatar at the end of last year. Some have suggested that Paige has put money in offshore accounts and then transferred Trump as a gift for the lifting of sanctions. But those who know the details of the transaction, said that offshore accounts designed for British managers with long-standing business ties with Russia.
"Rosneft" and "Gazprombank" subject to sanctions, but conduct transactions with them, not related to raw materials, does not violate the sanctions regime. On the other hand, according to the US sanctions, it was absolutely forbidden to a joint venture with Exxon "Rosneft" drilling of hydrocarbons in the Kara Sea and the exchange of technological know-how. And Exxon lost about 1 billion dollars. Numerous investment firms doing business with Russian companies, which are subject to the sanctions regime.
In March, "Gazprom", was entrenched demand among American and European investors in the bonds in 1,02 billion dollars. Buyers of the bonds, in effect, give the money to the company's debt. Lead managers on the issue were JP Morgan, Deutsche Bank, "Gazprombank" and "VTB Capital."
In the same month, "Gazprom" has received more 750 million dollar bonds for the first time after Russia illegally annexed the Crimea at the time of capture, which drove a wedge between the Kremlin and Washington. According to bne IntelliNews, this year the total value of the primary and secondary offerings of shares on the Moscow stock exchange has increased and amounted to 1,2 billion dollars, which corresponds to six-year high.