Dmitry Magonya | A commentary for Kommersant

The long-promised U.S. sanctions on the ruble debt have been officially announced. Washington has forbidden financial institutions to buy the ruble debt at initial public offerings since June 14. The share of foreign investors in the Russian market is already shrinking, not exceeding 20% of the market today - they are being actively replaced by the Russian state banks. But at the same time, the profitability of the Russian debt is increasing; it is profitable to invest in it, and experts are confident that foreign investors will find ways to continue to do so, including through the secondary market. As a result, the sanctions are perceived to be quite mild and have not led to a collapse in quotations. 

Dmitry Magonya, managing partner of ART DE LEX, believes that sanctions against the Russian government debt can seriously undermine the confidence in Russian federal bonds on the part of U.S. investors. "The Biden administration wants to show that it can conduct a dialogue with Russia from a position of strength, and hints that the restrictions will be tightened and refined if desired," says Mr. Magonya. 

More details: https://www.kommersant.ru/doc/4773422?query=ART%20DE%20LEX&stamp=637554061516130997