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Have Sanctions Been Losing its Effect on the Foreign Debt of Russian Companies?

Ekaterina M. Baeva – Postgraduate Student of the Chair «Finance and Credit», Saint Petersburg State University (Saint Petersburg, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Every new loop of economical limitations cause intense discussions regarding the effect of the sanctions on foreign debt of the affected companies. The article reviews if the affected companies could adapt to the new reality of the Eurobond market limitations, which have been introduced in 2014 as a response for Russian foreign policy. The second part of the article consists of the analysis of the reaction of the debt market on the sactions-affiliated news. The article revealed that despite the decrease in the intensity and scale of sanctions, later sanctions are still able to have a negative impact on the activities of Russian companies. They affect the entire market, including the companies that have not been listed in the ISS lists.

Key words: sanctions, market reaction to sanctions, bond market, eurobonds.