Geopolitics May Yet Ruin $4 Billion Bond Deal for Russia in 2017

Konstantin Vyshkovsky has shown he can dodge sanctions imposed against Russia by pulling off three Eurobond sales in just over a year. But the Finance Ministry’s debt chief may yet meet his match as the country looks to swap $4 billion of old foreign bonds for new ones.

The exchange, which Russia had planned to conduct “closer to the fall,” may spook holders of debt purchased before the Western penalties who may be concerned the new notes would run afoul of any curbs, Vyshkovsky said in an interview. While the sovereign isn’t subject to sanctions imposed over Russia’s role in the Ukrainian conflict, the U.S. Senate’s new bill on broader limits against companies has ordered a report on what impact possible restrictions on state debt or derivatives might have.