Russia Credit Risk Spikes To 3-Month Highs After US Expands Sanctions

Tyler Durden's picture

The US added 38 people (two Russian officials and three dozen other individuals and companies) to a sanctions list prompted by Russia's incursion in Ukraine, the US Treasury Department announced Tuesday, just before US President Trump was due to meet Ukrainian President Petro Poroshenko. Sovereign bond yields and CDS have spiked following the news...

Russia credit risk spike to its highest since March following the news...

And bond prices are tumbling...

As DPA reports, the move targets Ukrainian separatists and their supporters in eastern Ukraine, as well as individuals and companies involved in Russia's annexation of Crimea. It also taps several Russian officials and companies for evading existing sanctions.

The Treasury Department said it was designating the individuals and companies to prevent circumvention of sanctions and to keep US actions in line with other countries.

"These designations will maintain pressure on Russia to work toward a diplomatic solution," Treasury Secretary Steven Mnuchin said in a statement.

 

"This administration is committed to a diplomatic process that guarantees Ukrainian sovereignty, and there should be no sanctions relief until Russia meets its obligations under the Minsk agreements."

Designations of Ukrainian Separatists (E.O. 13660)
 
Today’s action targets 21 Ukrainian separatists, entities, and their supporters pursuant to E.O. 13660 for being responsible for or complicit in, or having engaged in, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; for acting for or on behalf of, being owned or controlled by, or providing material or other support to previously designated groups; or for asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine.  This action is part of an ongoing effort to hold those responsible for violations of Ukraine’s sovereignty and territorial integrity accountable for their actions.
 
Vadim Bulgakov is the head of the Federal Penitentiary Service of the so-called “Republic of Crimea” and Sevastopol.  Bulgakov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine.
 
Igor Kornet is the “Minister of Internal Affairs” of the so-called “Luhansk People’s Republic (LPR).”  He previously announced that the Ministry of Interior of the LPR would launch a large-scale issuance of LPR passports to residents.  Kornet is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the LPR.
 
Leonid Pasechnik is the “Minister of State Security” of the so-called  “LPR.”  He has been involved in a number of corruption schemes related to the smuggling of contraband between the LPR and Russia, to include arms, coal, fuel, and other related material.  Pasechnik is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the LPR.
 
Natalya Khorsheva is “Acting Minister” of the “Council of Ministers” of the so-called “LPR.”  She previously announced that the LPR Council of Ministers adopted a resolution that would establish the Russian Ruble as the principal currency of the LPR.  Khorsheva is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the LPR.
 
Petr Jarosh is the head of the Russian Federal Migration Service in the so-called “Republic of Crimea” and was sanctioned by the EU for supporting actions and policies which undermine the territorial integrity and independence of Ukraine.  Jarosh is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine.
 
Aleksey Kostrubitsky is the “Civil Defense and Emergency Situations Minister” of the so-called “Donetsk People’s Republic (DPR).”  Kostrubitsky is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR.
 
Aleksey Dikiy is the “Minister of Interior” of the so-called “DPR.”  Dikiy is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR.
 
Irina Nikitina is “Chairwoman” of the “Central National Bank” of the so-called “DPR.”  She previously announced the test launch of a system designed to allow money transfers between individuals from the DPR and LPR.  Nikitina is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR.
 
Andrei Melnikov is the “Minister of Economic Development” of the so-called “Republic of Crimea.”  Melnikov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine.
 
Oleg Kamshilov is the “Prosecutor” of the so-called “Republic of Crimea.”  Kamshilov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine.
 
Aleksey Muratov is an official representative of the so-called “DPR” in Russia.  He was involved in raising funds in Russia for relief aid for Donetsk and Luhansk, but it is alleged that only a small portion of the funds reached the intended recipients.  Muratov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR.
 
PMC Wagner is a private military company that has recruited and sent soldiers to fight alongside separatists in eastern Ukraine.  PMC Wagner is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine.
 
Dmitriy Utkin is the founder and leader of PMC Wagner.  Utkin is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, stability, sovereignty, or territorial integrity of Ukraine; and for acting or purporting to act for or on behalf of, directly or indirectly, PMC Wagner.
 
Central Republic Bank is the central bank of the so-called “DPR” and is directed and coordinated by the Council of Ministers of the DPR.  The bank operates throughout the territory of the self-proclaimed DPR and conducts the regular payment of pensions and benefits to residents of the territory.  Central Republic Bank is being designated for acting or purporting to act for or on behalf of, directly or indirectly, or being owned or controlled by, the DPR.
 
State Bank Luhansk People’s Republic is the central bank of the so-called “LPR” and was established by the Council of Ministers of the LPR.  The bank operates more than 110 branches within the territory of the so-called LPR.  State Bank is being designated for acting or purporting to act for or on behalf of, directly or indirectly, or being owned or controlled by, the LPR.
 
TSMRBANK, OOO is a Russian bank that services clients in the so-called “DPR” and “LPR.”  The bank maintains close ties with the leadership of the DPR.  TSMRBANK, OOO is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the LPR and the DPR.
 
Sergey Nazarov is being designated for materially assisting, sponsoring, or providing financial, material, or technological support for, or goods and services in support of, the DPR and LPR.  He is the chairman of the Interagency Commission for Humanitarian Assistance in the Donbass Republics (the “Interagency Commission”), which is nominally dedicated to providing humanitarian assistance to the Donetsk and Luhansk regions but in actuality also oversees projects in the transportation, trade, energy, tax, and financial sectors.  The Russian government, through Nazarov and the Interagency Commission, has exercised economic control in the Donetsk and Luhansk regions.  In addition to his activities in Donetsk and Luhansk, Nazarov has also worked to encourage international investment in Crimea.  Nazarov, the Deputy Minister of Economic Development of the Russian Federation, is also being designated pursuant to E.O. 13661 as an official of the Government of the Russian Federation.
 
Wolf Holding of Security Structures is an organization owned by the previously-designated Night Wolves motorcycle club.  The company provides martial arts and tactical military courses to foreign military, law enforcement, and Russian-speaking compatriots from European and Asian States. Wolf Holding of Security Structures is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Night Wolves.
 
Gennadii Anatolievich Nikulov is the President of Wolf Holding of Security Structures.  Gennadii Nikulov is being designated for acting for or on behalf of Wolf Holding of Security Structures. 
 
Denis Yuryevich Ryauzov is the Combat Trainer Leader for Wolf Holding of Security Structures.  Denis Ryauzov is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, and for acting or purporting to act for or on behalf of, directly or indirectly, Wolf Holding of Security Structures. 
 
Bike Center, a business located in Moscow, is being designated for being owned or controlled by the previously-designated leader of the Night Wolves, Aleksandr Zaldostanov. 
 
Designations Related to Russia’s Purported Annexation of Crimea
 
OFAC also designated 11 individuals and entities pursuant to E.O. 13685.  E.O. 13685 authorizes sanctions on any person determined to be operating in the Crimea region of Ukraine, to be a leader of an entity operating in the Crimea region of Ukraine, or to be owned or controlled by, or to have provided material support for, any person designated under this E.O.
 
IFD Kapital (IFDK) is a diversified holding company with investments in several sectors of the Russian economy, and owns a hotel complex in Crimea called the Riviera Sunrise Resort & Spa, which is also being designated today.  IFDK claimed control of the hotel complex after its previous managers halted operations in the Crimea region due to U.S. sanctions.  IFDK is being designated for operating in the Crimea region of Ukraine.
 
Riviera Sunrise Resort & Spa is a hotel complex operating in Alushta, Crimea.  Riviera Sunrise Resort & Spa is being designated for operating in the Crimea region of Ukraine, and for being owned or controlled by IFDK.
 
Olga Plaksina is the Chairperson of IFDK and is responsible for certain aspects of Crimean development.  Plaksina is being designated for being the leader of and acting or purporting to act for or on behalf of, directly or indirectly, IFDK.
 
KPSK, OOO is an insurance carrier located in Simferopol, Crimea.  The company, one of Russia’s top corporate property insurers, is the insurer of the bridge being constructed across the Kerch Strait connecting Crimea to Russia.  KPSK, OOO is being designated for operating in the Crimea region of Ukraine.
 
Oboronlogistika, OOO is the Russian Defense Ministry’s sole executor for the procurement of goods, works, and services for maritime transport of military troops and freight on the territory of the so-called Republic of Crimea.  Oboronlogistika, OOO owns maritime vessels operating in and around the Kerch ferry and the Baltic Sea.  Oboronlogistika, OOO is being designated for operating in the Crimea region of Ukraine.  
 
OFAC also designated the following six banks for operating in Crimea: Taatta, AO; Joint Stock Company Black Sea Bank of Development and Reconstruction; Joint Stock Commercial Bank Rublev; Joint Stock Company Commercial Bank North Credit; IS Bank, AO; and VVB, PAO.
 
Designations Related to Officials of the Russian Government and Sanctions Evasion
 
Today’s action also targets six individuals and entities pursuant to E.O. 13661, which authorizes sanctions on, among others, any individual or entity that is owned or controlled by, or that has provided material or other support to, persons operating in the arms or related materiel sector in the Russian Federation, and officials of the Government of the Russian Federation.
 
Molot-Oruzhie, OOO manufactures ordnance and accessories and is located in the Russian Federation.  In 2016, previously-designated Kalashnikov Concern advised a foreign company to use Molot-Oruzhie, OOO to falsify invoices in order to circumvent U.S. and EU sanctions.  Molot-Oruzhie is being designated for operating in the arms or related material sector of the Russian Federation and for acting or purporting to act for on behalf of, directly or indirectly, Kalashnikov Concern.
 
Limited Liability Company Concord Management and Consulting and Concord Catering are being designated for being owned or controlled by Yevgeniy Prigozhin, who OFAC designated in December 2016.
 
Alexander Babakov is the Russian Federation’s Special Presidential Representative for Cooperation with Organizations representing Russians Living Abroad.  Babakov was sanctioned in 2014 by the EU, which noted that he voted “yes” on a Russian bill for the annexation of Crimea. Alexander Babakov is being designated as an official of the Government of the Russian Federation.
 
Aleksandr Vorobev is Alexander Babakov’s Chief of Staff.  Aleksandr Vorobev is being designated for acting or purporting to act for or on behalf of, directly or indirectly, Alexander Babakov.
 
Mikhail Plisyuk is a staffer to Alexander Babakov.  Mikhail Plisyuk is being designated for acting or purporting to act for or on behalf of, directly or indirectly, Alexander Babakov.

* * *

Any assets they have in the U.S. are now blocked. Americans are prohibited from doing business with them.

Finally, Senator John McCain will be happy after complaining earlier that...

"We all know that the Russians tried to interfere in our elections. Here we are six months later and we've done nothing."

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Countrybunkererd's picture

What was it the USA did to Japan that triggered Pearl Harbor?

Ramesees's picture

Putin sure isn't getting his money's worth out of hacking the election.  

BorisTheBlade's picture

ICBMs provide a bigger bang on the buck. So to speak.

GUS100CORRINA's picture

Russia Credit Risk Spikes To 3-Month Highs After US Expands Sanctions

My response: I absolutely HATE where this is headed!!!!!! I don't want to belabor this point, but there is something much bigger going on with these events than is readily apparent. President TRUMP is looking like he is being pressured to do things he does not want to do.

Video below is looking to be more relevant with every passing day. You may want to view video as time permits in case you have never seen it. It does contain information concerning the overthrow of the Russian CZAR in 1917.

https://youtu.be/6X_xB1JJ_Es

Title: THE DEEP STATE - 50 Year Old Recording Explains Why The World Is Going Crazy

Topic: Illuminati and One World Order

525,000+ views as of June 20th.

Published on Jun 13, 2017 by End Times Productions

This is a recording from 1967, It describes events we see in the news today with shocking accuracy. Everything was pre planned and they only have one goal. 

froze25's picture

Ill check it out, thanks.

Edit: I am about 1/2 way through. Really good and informative. Thank you.

finametrics's picture

just watched it. very worthwhile. based on facts and historical record, cant ask for much more.

ThunderStruck's picture

You should send your documented proof that Russia "Hacked" the paper ballots and voting machines not connected to the internet along to the U.S. Department of Justice. They have wasted 9 months and miillions of U.S. Taxpayer $$ and so far are having trouble finding what has become nothing more than a "fake news" fart in the wind storm.

LawsofPhysics's picture

Russia is by no means Japan. The Russians are already establishing trade agreements outside of the Federal Reserve Promissory Note regime...

Countrybunkererd's picture

I completely understand that.  My point is that bombing russian allies, shooting down russian allied aircraft, and sanctions against russia could have (un)intended consequences of serious conflict.  But protecting the petrodollar is absolutely, in their eyes, worth all of it...and more.  Is there, in all seriousness, ANY way out of this going full scale open war?

Ahmeexnal's picture

forget full scale war...why don't they just dump all UST bonds and let the chips fall where they may?

 

Winston Churchill's picture

I think Uncle scam is totally prepared for that particular move, but are in  for a surprise..

But I've said for years, if I was in their position,I'd have used those USTs as collateral at western banks.

They may own them in title, but its a western problem if they default on the loans secured by them.

If I could tink of that, I'm sure others have as well.

Just imagine if the USTs have been rehypothecated several times.

The trouble is with the US being the suicidal death cult is has become, such a move would invite an ICBM launch.

Dealing with a homicidal maniac is not easy.

LawsofPhysics's picture

Russia will NOT enter into any full scale war. I have done business in Russia for 20+ years.  Similar to China, they have already been through several currency collapses and are playing a very long game.  In fact, given their available resources, current trade partners, and public debt they really do NOT have to do shit but sit back and watch the west implode. Similar to what China and Russia have been through multiple times, the west, specifically America will experience it's first death of money.

Good luck.

Countrybunkererd's picture

I hope you are correct.  That is why the US is pushing so hard to provoke any type of conflict.  The USA thinks in quarters of the year (for reports) and Russia thinks in decades+ while China thinks in centuries.  But can/will the USA wind up a false flag or worse a first strike in some stupid think tank where they believe they could win? Would Mossad?  If the US/Israel go after Iran next would that do it?  The west will implode either way but I don't think they are willing to accept second place or worse at any time.  I need a drink.

RagaMuffin's picture

Ideal position to be in. Since oil is paid for in dollars any rise in the USD is a bonus - ask Mexico    ;-)

Ramesees's picture

Trade agreements with whom?  Iran, China, North Korea, Syria, and some African and Latin American banana republics that only exist because of the IMF?  

Russia's demographic death spiral continues apace, on par with the Japanese.  Upside-down family trees don't work for long: Four grandparents, two parents, and one child.  

LawsofPhysics's picture

How many boomers are retiring again per day in America.  Don't be such a myopic retard.  What is America's public DEBT compared to Russia's again?  Moreover, where does Europe buy a significant portion of their oil and gas from again?

Or do you really believe that debt and trade doesn't matter?

finametrics's picture

lie's dipstick. the Russian population has been recovering since 2009. moreover, we got a nice boost of fellow Slavics after taking Crimea back from the zio roaches.

sinbad2's picture

Dude, Russia has gold and cash, the US has Visa and Mastercard.

junction's picture

On the sanctions list: Riviera Sunrise Resort & Spa. What next, nail salons?  Trump has completely sold out his supporters and is now no more than a stooge actor reading off a New World Order (read Rothschild) script.  You know that this new sanctions list was prepared last year by Obama's flunkies, then held in reserve.  Ever since a Ukrainian jet shot down Malaysia Airlines flight MH17 on 17 July 2014, mistaking it for Putin's jet, the Ukrainian puppet government has been on Putin's list.  And if Putin gets confirmation that Obama ordered the hit on his jet, that will be too bad for Trump now.

sinbad2's picture

Sanctions of course, the US loves sanctions.

RagaMuffin's picture

The EU ships "refugees" to the US in    3....2...

Fake Trump's picture

Didn't see Putin on the list.

LawsofPhysics's picture

Still trying to save the petrodollar I see....

Move along, move along...

sinbad2's picture

It's like giving CPR to a guy who died 15 minutes ago, even if his heart starts again, his brain is fucked.

BlindMonkey's picture

I want to go to Crimea just to get a selfie to send to the State Dept. 

 

Fuck these warmongering bastards.

me or you's picture

Clearly Mr Putin is not the one desperate to start a conflict. 

Dr. Engali's picture

Punishing the poor by expanding sanctions has always worked to solve world problems. Just ask Madeleine Albright.

We think 500,000 Dead Iraqi children is worth it.

 

https://m.youtube.com/watch?v=omnskeu-puE

rejected's picture

She is 80,,, she will soon join other deceased war mongering, children killing pervs like Janet Reno in Hell with their god.

Good riddance.

_freedom_lover_'s picture

Neocons rule Washington. The Swamp has taken over.

roadhazard's picture

It's OK, Pootin sez it makes them stronger... pass the Wodka.

rejected's picture

Like the USA is the economic model the world should strive for. LOL.

An old saying comes to mind.  Clean off your doorstep before telling others how dirty theirs are.

Cordeezy's picture

Awesome!  the economy is on its last leg so we have to start a war to cover up who really tanked the economy.  When the economy tanks, it will be blamed on a war.  Meaningless bloodshed only to serve an agenda of the elite.  Hopefully Trump will stop this but his hands are probably tied.

 

 

www.escapeamazon.com

HominyTwin's picture

Another day, another delusion in our imperial capital.

Ben A Drill's picture

If Russia was so bad then why do we still have RSX listed on our stock exchange?

rejected's picture

"The Russian incursion into Ukraine???? " While the USA, Australia and others are in Syria illegally,,, shooting down Syrian Aircraft trying to destroy ISIS.

The USA funded the coup to install Nazis in Ukraine and today the US spends millions arming and training these Nazis to kill the Russian speaking population in sections of Ukraine that did not wish to be ruled by these bastards.

This shit is sooo sickeningly disgusting I cannot believe they keep regurgitating it. They need to put a picture of the US inside the dictionary to define hypocrisy.

I'm sorry folks, but those supposed "elected officials" do not have our best interests in mind. They are absolutely mad and need to be removed from government before they kill us all!

Partnering with terrorists around the world, aligning with Nazis in Europe,,, this needs to STOP!

geno-econ's picture

US strategy  designed by SA, Israel and Neocons is very simple.  Deny Russia European nat gas market causing an economic collapse  before China emerges as a strong empire (thanks to Mr. Kissinger) that cooperates with Russia to overthrow U.S. petrodollar and establish new trading patterns in Eurasia resulting in western banking system  bankruptcy.  Nations such as Australia, Qatar. EU, Iran, India and others are realigning their longer term interests accordingly.  Syria is important as a test case causing untold human misery for which the U.S. is totally responsible. 

slammin_dude's picture

LOL...like Russia cares....they handled 17% interest rates just fine....USSA can't handle fuckin .75%....who we kidding??

el-greco's picture

look at the bright side...at least a few hungry Ukies got a paycheck for digging up names that no one cares about. Congress feels smug about imposing a second round of completely ineffective sanctions and as always the US taxpayer will foot everyone's bill, which you one could say is good for supporting jobs, any kind of jobs both at home and in the colonies. Bureaucracy lives!

Too-Big-to-Bail's picture

This could escalate very quickly -- this is akin to the economic penalties placed on Germany at the Treaty of Versailles after WWI and look how that ended

Lynn Trainor's picture

The hypocritical United States needs to be inflicted with sanctions due to its' incursions into Syria, etc., ete., etc., . . . .