U.S. Said to Discourage Banks From Helping Russia Sell Debt

The U.S. government has urged some of the nation’s largest banks to refrain from helping Russia sell bonds, according to people with knowledge of the situation, as helping the nation obtain foreign funding risks undermining sanctions imposed over the Ukraine conflict.

The State Department and Treasury Department told banks this month that participating in a bond sale would run counter to U.S. foreign policy, even if it’s not explicitly barred by sanctions, said the people, asking not to be identified because the talks were private. “Many” banks didn’t respond to the Russian Finance Ministry’s call for proposal to organize the sovereign Eurobond sale, which means they won’t be participating, Russian Deputy Finance Minister Sergey Storchak told reporters Thursday.