Russia Goes It Alone With First Eurobond Since Sanctions

Struggling to cover a widening budget gap, Russia is selling its first Eurobond since being hit with international sanctions two years ago, with state bank VTB Capital as the sole organizer of the deal after the U.S. and European Union warned foreign banks against participating.

Russia said in the prospectus Monday that none of the proceeds would go to entities subject to U.S. and EU restrictions. But there were still questions about whether foreign investors would be able to trade the bonds easily. The prospectus said that there could be “no assurance” that the bonds would be eligible for major international clearing systems, such as Euroclear Bank SA and Clearstream Banking SA, on which many foreign funds rely.