Theresa May has agreed to look into imposing a ban on the City of London from helping Russia to sell its sovereign debt, which prop ups the Russian economy. Last month, City clearing houses, working alongside a major sanctioned Russian bank, helped issue $4bn (£2.83bn) of eurobonds to finance Russian sovereign debt, of which nearly half was sold in London markets. A loophole in EU and UK legislation has allowed sanctioned Russian banks, primarily VTB bank, to act as the main organisers – known as book runners – for the issuance of Russian debt. Citing interest from German investors, Russia said on Tuesday it may return to foreign debt markets later this year with bonds in different currencies and maturities. Foreign investors hold more than a third of Russian debt.

Source: The Guardian March 28, 2018 11:17 UTC