Russia Sees Sanctions Insurance in Flood of Foreign Bond Buying

Things have rarely been so good for Russian sovereign debt chief Konstantin Vyshkovsky. Foreign investors want his bonds so much that he’s already sold half his annual target and now can place them at a discount to the market.

But the fear of new U.S. Sanctions is never far from his mind. It’s a big reason why Russia may sell a second Eurobond this year -- not to raise money -- but because he believes that if big U.S. investors such as Blackrock Inc. and the California State pension fund hold billions in Russian debt, Washington will think twice about targeting the market for fresh penalties.