JPMorgan and Bank of America to resume trading in Russian bonds
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JPMorgan Chase & Co. and Bank of America Corp. resume trading in Russian bonds for clients who want to exit Russian debt obligations, reported Bloomberg agency, citing sources.
According to the publication, last week Bank of America sent notices to customers that it was ready to act as an intermediary in operations to exit the Russian market. This was facilitated by the clarification of the US Treasury Department, which clarified that the curtailment of positions by individuals is not a violation of the country’s sanctions.
Bloomberg clarifies that due to the special operation in Ukraine and sanctions, many banks left Russia and stopped operations with Russian assets, which became a problem for investors. U.S. sanctions rules have always allowed investors to sell securities, lawyers said, but many brokers have refused to do so due to uncertainty surrounding the issue.
The agency previously reported that Barclays Plc and Jefferies Financial Group Inc. turned to investors with similar proposals. Reuters reported on August 15 that JPMorgan, Bank of America and Citigroup resumed operations with Russian bonds after the start of the special operation.
In July, the US Office of Foreign Assets Control (OFAC) granted a license authorizing the transactions required to exit Russian debt or shares, the document also authorizes the purchase of securities if this would be part of the sale process. The license will be valid until October 20.
Western banks began to curtail their work in Russia after the start of a military operation in Ukraine, which led to the introduction of massive Western sanctions. By the end of March, Goldman Sachs, JPMorgan Chase, Deutsche Bank, Commerzbank and Credit Agricole announced their withdrawal from the country.
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