US Kicks The Growling Bear, Issues More Russian Sanctions; Restricts Debt Market Access

Tyler Durden's picture




 

Just as they promised (and acting unilaterally as Europe declined to go along with The White House), President Obama has unleashed a set of 'sectoral' sanctions to wreak havoc in Russia. The sanctions include the standard travel bans but adds rules that block several of Russia's largest firms from American debt markets. The plan - to restrict funding availability for Russian firms to under 90-days - is however, dead-on-arrival. As we explained here, Russian companies, facing $115 billion of debt due over the next 12 months, will have the funds even if bond markets shut as "the amount of cash on balance sheets of Russian companies, committed credit lines from banks and the operating cash flows they will get is sufficient for the companies to comfortably service their liabilities." This will do nothing but raise Putin's ire even more.

  • U.S. OFFICIAL SAYS RUSSIA FAILING TO DE-ESCALATE IN UKRAINE

As NY Times reports,

President Obama escalated sanctions against Russia on Wednesday by targeting a series of large banks and energy and defense firms in what officials described as the most punishing measures to date for Moscow’s intervention in Ukraine.

 

While the latest moves do not cut off entire sectors of the Russian economy, as threatened in the past, the administration’s actions go significantly further than the financial and travel limits imposed so far on several dozen individuals and their businesses. The new measures will severely restrict access to American debt markets for the targeted companies.

 

The moves were coordinated with European leaders, who were meeting in Brussels on Wednesday to consider their own package of penalties against Russia. The Europeans declined to go as far as the United States, instead focusing on a plan to block loans for new projects in Russia by European investment and development banks.

 

The disparate approaches reflect the deeper divisions between Washington and Brussels over how tough to be with Russia.

Here is the full list of sanctioned entities:

Specially Designated Nationals List Update

In addition, the following individuals have been added to OFAC's SDN List:

  • BESEDA, Sergey (a.k.a. BESEDA, Sergei; a.k.a. BESEDA, Sergei Orestovoch); DOB 1954; Commander of the Fifth Service of the FSB; Commander of the Service for Operational Information and International Communications of the FSB; FSB Colonel General; Colonel-General (individual) [UKRAINE2].
  • BORODAI, Aleksandr (a.k.a. BORODAI, Alexander); DOB 25 Jul 1972; nationality Russia (individual) [UKRAINE].
  • NEVEROV, Sergei Ivanovich (a.k.a. NEVEROV, Sergei; a.k.a. NEVEROV, Sergey); DOB 21 Dec 1961; POB Tashtagol, Russia; Deputy Chairman of the State Duma of the Russian Federation; Member of the State Duma Committee on Housing Policy and Housing and Communal Services (individual) [UKRAINE2].
  • SAVELYEV, Oleg Genrikhovich; DOB 27 Oct 1965; POB St. Petersburg, Russia; Minister for Crimean Affairs (individual) [UKRAINE2].
  • SHCHEGOLEV, Igor (a.k.a. SHCHYOGOLEV, Igor Olegovich); DOB 10 Nov 1965; POB Vinnitsa, Ukraine; alt. POB Vinnytsia, Ukraine; Aide to the President of the Russian Federation (individual) [UKRAINE2].

The following entities have been added to OFAC's SDN List:

  • DONETSK PEOPLE'S REPUBLIC, Donetsk Region, Ukraine [UKRAINE].
  • FEDERAL STATE UNITARY ENTERPRISE STATE RESEARCH AND PRODUCTION ENTERPRISE BAZALT (a.k.a. FEDERAL STATE UNITARY ENTERPRISE, STATE RESEARCH AND PRODUCTION ENTERPRISE BAZALT; a.k.a. FSUE SRPE BAZALT; a.k.a. STATE RESEARCH AND PRODUCTION ENTERPRISE BAZALT)
  • FEODOSIYA ENTERPRISE (a.k.a. FEODOSIA OIL PRODUCTS SUPPLY CO.; a.k.a. FEODOSIYA ENTERPRISE ON PROVIDING OIL PRODUCTS; a.k.a. FEODOSIYSKE COMPANY FOR THE OIL; a.k.a. THEODOSIYA OIL TERMINAL)
  • JOINT STOCK COMPANY CONCERN RADIO-ELECTRONIC TECHNOLOGIES (a.k.a. CONCERN RADIO-ELECTRONIC TECHNOLOGIES; a.k.a. "KRET")
  • JOINT STOCK COMPANY CONCERN SOZVEZDIE (a.k.a. JSC CONCERN SOZVEZDIE)
  • JOINT STOCK COMPANY MILITARY-INDUSTRIAL CORPORATION NPO MASHINOSTROYENIA (a.k.a. JOINT STOCK COMPANY MILITARY INDUSTRIAL CONSORTIUM NPO MASHINOSTROYENIA; a.k.a. JSC MIC NPO MASHINOSTROYENIA; a.k.a. MIC NPO MASHINOSTROYENIA JSC; a.k.a. MIC NPO MASHINOSTROYENIYA JSC; a.k.a. MILITARY INDUSTRIAL CORPORATION NPO MASHINOSTROENIA OAO; a.k.a. OPEN JOINT STOCK COMPANY MILITARY INDUSTRIAL CORPORATION SCIENTIFIC AND PRODUCTION MACHINE BUILDING ASSOCIATION; a.k.a. VOENNO-PROMYSHLENNAYA KORPORATSIYA NAUCHNO-PROIZVODSTVENNOE OBEDINENIE MASHINOSTROENIYA OAO; a.k.a. VPK NPO MASHINOSTROENIYA),
  • JOINT-STOCK COMPANY CONCERN ALMAZ-ANTEY (a.k.a. ALMAZ-ANTEY CORP; a.k.a. ALMAZ-ANTEY DEFENSE CORPORATION; a.k.a. ALMAZ-ANTEY JSC; f.k.a. OTKRYTOE AKTSIONERNOE OBSHCHESTVO KONTSERN PVO ALMAZ ANTEI)
  • KALASHNIKOV CONCERN (a.k.a. CONCERN KALASHNIKOV; a.k.a. IZHEVSKIY MASHINOSTROITEL'NYI ZAVOD OAO; f.k.a. IZHMASH R&D CENTER; f.k.a. JSC NPO IZHMASH; f.k.a. NPO IZHMASH OAO; a.k.a. OJSC CONCERN KALASHNIKOV; f.k.a. OJSC IZHMASH; f.k.a. SCIENTIFIC PRODUCTION ASSOCIATION IZHMASH JOINT STOCK COMPANY)
  • KONSTRUKTORSKOE BYURO PRIBOROSTROENIYA OTKRYTOE AKTSIONERNOE OBSHCHESTVO (a.k.a. INSTRUMENT DESIGN BUREAU; a.k.a. JSC KBP INSTRUMENT DESIGN BUREAU; a.k.a. KBP INSTRUMENT DESIGN BUREAU; a.k.a. KBP INSTRUMENT DESIGN BUREAU JOINT STOCK COMPANY; a.k.a. "KBP OAO")
  • LUHANSK PEOPLE'S REPUBLIC (a.k.a. LUGANSK PEOPLE'S REPUBLIC; a.k.a. PEOPLE'S REPUBLIC OF LUHANSK)
  • URALVAGONZAVOD (a.k.a. NAUCHNO-PROIZVODSTVENNAYA KORPORATSIYA URALVAGONZAVOD OAO; a.k.a. NPK URALVAGONZAVOD; a.k.a. NPK URALVAGONZAVOD OAO; a.k.a. OJSC RESEARCH AND PRODUCTION CORPORATION URALVAGONZAVOD; a.k.a. RESEARCH AND PRODUCTION CORPORATION URALVAGONZAVOD; a.k.a. RESEARCH AND PRODUCTION CORPORATION URALVAGONZAVOD OAO; a.k.a. URALVAGONZAVOD CORPORATION; a.k.a. "UVZ")

Sectoral Sanctions Identifications List Update

The following entities have been added to OFAC's Sectoral Sanctions Identifications List:
 
  • GAZPROMBANK OAO (a.k.a. GAZPROMBANK GAS INDUSTRY OJSC; a.k.a. GAZPROMBANK OJSC; a.k.a. GAZPROMBANK OPEN JOINT STOCK COMPANY; a.k.a. GAZPROMBANK OTKRYTOE AKTSIONERNOE OBSHCHESTVO; a.k.a. GPB, OAO; a.k.a. GPB, OJSC
  • OAO NOVATEK (a.k.a. FINANSOVO-INVESTITSIONNAYA KOMPANIYA NOVAFININVEST OAO; a.k.a. NOVATEK)
  • OPEN JOINT-STOCK COMPANY ROSNEFT OIL COMPANY (a.k.a. OAO ROSNEFT OIL COMPANY; a.k.a. OIL COMPANY ROSNEFT; a.k.a. OJSC ROSNEFT OIL COMPANY; a.k.a. ROSNEFT; a.k.a. ROSNEFT OIL COMPANY)
  • VNESHECONOMBANK (a.k.a. BANK FOR DEVELOPMENT AND FOREIGN ECONOMIC AFFAIRS (VNESHECONOMBANK) STATE CORPORATION; a.k.a. BANK RAZVITIYA I VNESHNEEKONOMICHESKOI DEYATELNOSTI (VNESHEKONOMBANK) GOSUDARSTVENNAYA KORPORATSIYA; a.k.a. "VEB")

 

*  *  *

But - as we noted here - Russian firms can handle a debt market closure for one simple reason: they actually make money.

Russian companies, facing $115 billion of debt due over the next 12 months, will have the funds even as bond markets shut because of the Ukraine crisis, according to Moody’s Investors Service and Fitch Ratings.  

 

Firms will have about $100 billion in cash and earnings at their disposal during the next 18 months, Moody’s said in an analysis of 47 businesses April 11. Almost all 55 companies examined by Fitch are “well placed” to withstand a closed refinancing market for the rest of 2014, it said in a note on April 16. Banks have more than $20 billion in foreign currency to lend as the tensions prompted customers to convert their ruble savings, ZAO Raiffeisenbank said.

 

“The amount of cash on balances of Russian companies, committed credit lines from banks and the operating cash flows they will get is sufficient for the companies to comfortably service their liabilities,” Denis Perevezentsev, an analyst at Moody’s in Moscow, said by phone on April 17.

And now we await the blowback, as just like the last round of US sanctions merely accelerated the Russia-China holy grail gas deal, so this one should should lead to a promptly completion of the BRIC bank. The only good outcome, considering the Fed is desperate for someone, anyone, to sell bonds, is that Russia and its $110 billion in TSYs, should promptly oblige.

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Wed, 07/16/2014 - 16:38 | 4964204 DavidPierre
DavidPierre's picture

Germany Pivoting East
By: Jim Willie CB

It is finally happening in full view, in unmistakable manner, in a way that the awake, the aware, and the conscious can perceive in alarming stunning terms. The central force of Europe, the industrial juggernaut, the stable core, has begun to pivot East. The Germans have had enough, fed up with destructive US activities of all kinds. For the last few months, they have been laying out their indictment, their justification, their reasons to abandon the corrupt US-UK crowd. The bank wreckage, the market rigging, the endless wars, the sanctions which backfire, the sham monetary policy, the economic sabotage, the spying, the gold gimmicks, it has finally reached a critical level. Germany has begun to move East in full view.

Wed, 07/16/2014 - 16:44 | 4964220 economics9698
economics9698's picture

Piss off the tribe and no paper for you bad bear.

Wed, 07/16/2014 - 16:45 | 4964233 Keyser
Keyser's picture

The US cannot stand 2 more years of the monkey with a hand grenade as Russian Deputy Premier so aptly put... 

Wed, 07/16/2014 - 16:46 | 4964239 AlaricBalth
AlaricBalth's picture

. "The disparate approaches reflect the deeper divisions between Washington and Brussels over how tough to be with Russia."

The US and Europe are playing good cop, bad cop which gives Brussels implausible deniability concerning sactions due to their dependency on Russia for energy.

Wed, 07/16/2014 - 16:50 | 4964255 wee-weed up
wee-weed up's picture

Putin is going to thump Obozo like one does to a bug with their finger.

Wed, 07/16/2014 - 16:56 | 4964291 john39
john39's picture

someone wants a war...  and this is all staging.

Wed, 07/16/2014 - 16:58 | 4964303 Latina Lover
Latina Lover's picture

LOL, USSA

Wed, 07/16/2014 - 17:00 | 4964309 SoberOne
SoberOne's picture

I am convinced now that Obama has colluded with Russia, or he is one of their stooges.  I mean, really?!

Wed, 07/16/2014 - 17:04 | 4964331 Latina Lover
Latina Lover's picture

I believe that Obama is earning his Peace Prize by not helping Russia.  God help the Russians if Obama was  really on their side.

Wed, 07/16/2014 - 17:10 | 4964365 DoChenRollingBearing
DoChenRollingBearing's picture

O/T, I just saw this story via reddit.  A new hole (approx. 80 m diameter) has appeared in the ground in Siberia.  They are checking it out.

"In Russia, GAS fracks YOU"

http://www.9news.com.au/world/2014/07/16/04/48/giant-hole-appears-at-wor...

Wed, 07/16/2014 - 17:33 | 4964476 BigJim
BigJim's picture

 US Kicks The Growling Bear, Issues More Russian Sanctions; Restricts Debt Market Access

Hey, Vlad! Why don't you buy a shit-ton of physical gold to remind the US just how fragile their ponzi really is?

Wed, 07/16/2014 - 17:50 | 4964559 7.62x54r
7.62x54r's picture

( sarcasm ) Allowing the Ukrainian Army to shell Russians living near the border is obviously the height of Russian aggression.

Wed, 07/16/2014 - 17:47 | 4964542 SilverDOG
SilverDOG's picture

DoChenRollingBearing

 

SO... really nothing to say, only about yourself as usual. 

Except redslit ego masturbation and a big dark hole.

"They are checking it out" 

your fingers... due to toilet paper sanctions... ?

Do not need to know any or all. 

Wed, 07/16/2014 - 17:59 | 4964582 DoChenRollingBearing
DoChenRollingBearing's picture

Um, it's a story about a new 80 m diameter mysterious hole that appeared in Yamal, Siberia.  They do not know the cause, but have apparently ruled OUT a meteor impact (and some other causes).  The Russians are sending a team there very quickly.

It's an interesting story for anyone interested in geology, natural history, etc.  Take a look, maybe you would agree.

***

I can feel the hate..., most PM guys do not exude that...  Why, bro?

Wed, 07/16/2014 - 18:09 | 4964611 SilverDOG
SilverDOG's picture

I read the story, now again in your response, about yourself.

Take your interjection attention addiction to redslit.

You may feel as you so choose, dark holes and projection thereof.

I do not waste my time with carnal emotions, or waste other peoples time.

Yuz catch dat bra?

 

Wed, 07/16/2014 - 18:25 | 4964664 DoChenRollingBearing
DoChenRollingBearing's picture

Ah, OK, I see that my wording threw you at my first post above, I meant no sexual references, but I now can see why you reacted like that.

Peace

Wed, 07/16/2014 - 22:01 | 4965415 SilverDOG
SilverDOG's picture

Nope, just tired of your selfing.

See that.

Read all your mirror pov.

Wed, 07/16/2014 - 17:52 | 4964562 mc225
mc225's picture

hilarious

Wed, 07/16/2014 - 17:14 | 4964380 lakecity55
lakecity55's picture

Great, but you took a while figuring it out, man.

Wed, 07/16/2014 - 20:56 | 4965203 max2205
max2205's picture

It's all Russian to me.....

Wed, 07/16/2014 - 17:05 | 4964338 Anusocracy
Anusocracy's picture

Germany is positioning itself as a hub to the railway and roadway systems being developed in Asia.

http://en.wikipedia.org/wiki/Asian_Highway_Network

Wed, 07/16/2014 - 16:59 | 4964306 SMG
SMG's picture

Yep, gotta get down to 500 million people.

http://en.wikipedia.org/wiki/Georgia_Guidestones

Here's the plan:

http://www.worldaffairsbrief.com/keytopics/threats.html

Somebody has to stop them.  But if not save yourself and your family.

 

Wed, 07/16/2014 - 17:08 | 4964299 power steering
power steering's picture

But first Putin's going to tear off his shirt and he and Obama are going to dance the "YMCA" with Obama as the Indian and Putin as the motorcycle cop. 1. 2. 3. 4......

Wed, 07/16/2014 - 17:21 | 4964417 pods
pods's picture

So what happens if Russian companies realize that they do not NEED our debt markets, and that realization spreads to others we ALLOW to access USD debt?

I have done some dumb things in my life, but never have I risked an entire country because I was spiteful.

Debt is second only to bullshit in the USA's exports, right ahead of death and misery.

pods

Thu, 07/17/2014 - 03:52 | 4966340 Sokhmate
Sokhmate's picture

It's either plausible deniability or implausible undeniability

 

The US and Europe are playing good cop, bad cop which gives Brussels implausible deniability concerning sactions due to their dependency on Russia for energy.

Wed, 07/16/2014 - 16:47 | 4964240 Pladizow
Pladizow's picture

.

Wed, 07/16/2014 - 16:46 | 4964247 max2205
max2205's picture

Barry's gonna get us all killed...who cares about Ukraine?

Wed, 07/16/2014 - 16:53 | 4964278 Postal
Postal's picture

I do: I knew some girls over there a few years back. Lost touch with them, but I do hope they're all right.

Wed, 07/16/2014 - 16:58 | 4964296 Husk-Erzulie
Husk-Erzulie's picture

Not Izhmash... Noooooooooo

Dammit Barry, now you really are going to lose the NRA voters.

Wed, 07/16/2014 - 17:52 | 4964565 7.62x54r
7.62x54r's picture

This means War!

Wed, 07/16/2014 - 16:48 | 4964251 Anusocracy
Anusocracy's picture

It is so wonderful watching the downfall of our psychopathic lords and masters.

Wed, 07/16/2014 - 17:42 | 4964516 viahj
viahj's picture

downfall?  seems to me that events are going according to plan to destroy the USA

Wed, 07/16/2014 - 18:39 | 4964729 Anusocracy
Anusocracy's picture

There is no plan, it is just a normal outcome of their innate behavior. A process repeated over and over throughout history.

No forager mindset can successfully run a modern positive sum economy. No pharaonic mindset can successfuly run a modern positive sum economy.

Only decentralization through freedom and voluntary interaction can.

Wed, 07/16/2014 - 20:42 | 4965160 Cruel Aid
Cruel Aid's picture

yea seems like no time to waste pedal to the metal to me.

Nobody can make the absolute wrong move every single time.

UN playbook at work here

Wed, 07/16/2014 - 19:42 | 4964970 Buck Johnson
Buck Johnson's picture

Why is Obama wanting to go after Russia?  I mean he has to know they won't back down, and the only other option is war.

 

 

Wed, 07/16/2014 - 16:44 | 4964222 Pladizow
Pladizow's picture

Russian Bear Responds: http://i.imgur.com/T6LHC.gif

Wed, 07/16/2014 - 16:44 | 4964227 booboo
booboo's picture

 Please Vlad, the next time you meet Barry do a round house kick right to his nappy milk dud in front of his fawning presstitutes and while he is crawling around searching for his missing pearly white cock ticklers kick him in his love canal.

Wed, 07/16/2014 - 16:49 | 4964261 lakecity55
lakecity55's picture

Vlad, take a pic of him giving you a BJ!

Wed, 07/16/2014 - 16:56 | 4964289 TeamDepends
TeamDepends's picture

Rest assured, Vlad is all man.  Nuland, however....

Wed, 07/16/2014 - 17:02 | 4964316 power steering
power steering's picture

The Larry Sinclair pics aren't enough?

Wed, 07/16/2014 - 17:10 | 4964359 lakecity55
lakecity55's picture

I don't want to see them, just know if Bath House refuses an order, Vlad will be waving a particular photo at him.

Wed, 07/16/2014 - 17:08 | 4964348 lakecity55
lakecity55's picture

The Surprise 2014 Lavrov-Steinmeir Pact.

"Dear Vlad, please accept a request from my FM, Herr Steinmeir to travel to Moscow at your earliest convenience."
---Angela.

Wed, 07/16/2014 - 20:46 | 4965171 ramacers
ramacers's picture

spot on man. nobody needs the Hun as an enemy in 2014. dunce neo-cons will end our world.

Wed, 07/16/2014 - 20:50 | 4965182 ramacers
ramacers's picture

spot on man. nobody needs the Hun as an enemy in 2014. dunce neo-cons will end our world.

Wed, 07/16/2014 - 16:40 | 4964206 world_debt_slave
world_debt_slave's picture

paper fiats

Wed, 07/16/2014 - 16:41 | 4964208 mightybillfuji
mightybillfuji's picture

Certainly Russia would not benefit from any action that raised oil prices right now. Why I can hardly think of anything they could do in Syria, Iran, Iraq, Libya or Saudi Arabia that would help the world's largest oil exporter get more money for its oil.

 

they will probably just grin and Bear it.

Wed, 07/16/2014 - 16:41 | 4964209 ThisIsBob
ThisIsBob's picture

That's it?  That's all you got?

Wed, 07/16/2014 - 16:41 | 4964210 ENTP
ENTP's picture

It would be a real shame if Putin learned how to thrive without American debt and fiat.....does Obama understand what he is going to create?

Wed, 07/16/2014 - 16:46 | 4964242 Keyser
Keyser's picture

Now we will see electricity prices soar in the US as over 30% of coal used in US power planets comes from, ................ wait for it .................. RUSSIA!!!!!!!

 

 

Wed, 07/16/2014 - 16:51 | 4964263 ENTP
ENTP's picture

Community Organizers don't understand supply and demand, they only understand how to demand other people's money and throw tantrums.  It works on the South Side of Chicago, but its an embarssment on an International stage.  Putin is laughing.

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