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EU pushes Russia to default by sanctioning National Settlement Depository — expert

Head of the analytical department of the bank BKF Maxim Osadchiy noted that the sanctions also lead to stronger trend of making payments on Eurobonds in rubles

MOSCOW, June 4. /TASS/. The inclusion of the National Settlement Depository (NSD), which serviced the Russian state debt, in the sixth package of EU anti-Russian sanctions is a maneuver to push Russia into an artificial default, Maxim Osadchiy, head of the analytical department of the bank BKF, told TASS.

"The main consequence of the sanctions against NSD is that it stops conducting transactions in euros. Since NSD's accounts with Euroclear and Clearstream have already been blocked, the new sanctions will not lead to significant changes for Russian investors," he said.

Osadchiy added that the sanctions also lead to stronger trend of making payments on Eurobonds in rubles.

The analyst believes that for foreign investors, the new sanctions lead to significant changes. "The channel for payments to foreigners in rubles on the Russian state debt has been blocked. So, the sanctions against NSD are another maneuver to push Russia into an artificial default. Moreover, the National Clearing Center, through which Europeans pay for gas in rubles, was not subject to sanctions," the expert stressed.

"The main conclusion for Russian investors: if you live in Russia, invest in Russian assets and only in rubles," Osadchiy concluded.

On Friday, the European Union included NSD to the sixth package of anti-Russian sanctions.

NSD is a Russian non-banking financial institution and Russia's central depository. It is 99.99% owned by the Moscow Exchange and is its settlement depository. It is used to service securities, including Russian government debt, and debts of 17 more legal entities.