The desire of the Senate to study the issue of applying restrictive measures against the Russian state debt will lead to the fact that Russia will take measures of its protection and the protection of their reserves in securities, said Trade representative of Russian Federation in the United States Alexander Stadnik.
However, he clarified that while he did not quite understand what steps can be taken in respect of debt of the Russian Federation.
“As for the question of sovereign debt of Russia (mentioned in the bill), the U.S. Treasury must provide 180 days after the enactment of the law (if adopted) report with proposals for restrictive measures that are not yet fully understood. But in any case, the Russian Federation has always taken steps to protect its debt and reserves in US government bonds and other viable States,” he told RIA Novosti.
In April Russia increased its investments in Treasury securities of the United States by 5.1 billion to $ 104,9 billion dollars, according to the U.S. Treasury Department. The Russian portfolio of U.S. bonds increased significantly from October 2016, from 74,6 billion dollars.
Despite the increased portfolio by more than a third, Russia is still not among the top ten largest holders of us debt and is on the 14th place. Leading Japan with $ 1.1 trillion, followed with a small gap should China from 1.09 trillion dollars.
The question of application of measures against the debt of the Russian Federation appeared in the bill, which was passed on Thursday by the upper house of Congress — the bill provides for new measures against Russia and Iran.
In addition to the consideration of the question of sovereign borrowing, the document proposes to reduce the maximum term of market financing of Russian banks under sanctions, up to 14 days, and companies in the oil and gas sector — up to 30 days.
“In this regard, a lot of talk and reviews on the subject that it looks like the amendment of Jackson — Vanik amendment to the 1974 trade Act. But we are well aware that without this procedure, the sanctions will remain in force. In this sense, limiting the ability of the US President in the draft law looks like a demonstrative strengthening of the positions of his opponents,” adds sales representative.
He notes: “Shorten the already small time frame of grant funding. In this sense, the adaptation of our economy to this kind of limitations is already available. So it looks like a kind of criminal punishment in the form of a second or third life. But on the other hand, it definitely will require some configuration and measures to still changing conditions”.
“Our financial institutions have the necessary margin of safety. But most importantly, working more closely with more reliable partners. We continue to see the USA is an important partner, but we do it with an amendment to outright hostility, and the mental instability of a certain part of the political establishment of this country. We are not talking about American business. Today, however, and in the old days, most American businessmen are much more reliable partners than individual policy. The participation of American companies in the SPIEF-2017 this number is proof,” he says.
And concludes: “If we talk about response, I would suggest to consider sanctions as restrictions imposed by the U.S. side in their own company. Activities in terms of sanctions spur our companies to limit their financial interaction with the us agencies, not to create in the jurisdiction of the United States subsidiaries, to withdraw their accounts from this jurisdiction, to reach partners in other countries.”