EU warns major European banks off placing Russian Eurobonds

A number of large  European banks including BNP Paribas, Credit Suisse Group, Deutsche Bank, HSBC and UBS  have decided to withdraw from the placement of Russian Eurobonds. According to the The Wall Street Journal, the decision  has been taken on the recommendation of  Brussels, which had previously warned them not to deploy Russian government securities.
While, according to the newspaper’s sources,  the EU does not prohibit the banks involved in these transactions, since the introduction of sanctions against Russia does not directly impose restrictions on the placement of its government securities by European banks, Brussels is concerned that funds raised as a result of such  transactions, may ultimately end up at the disposal of the companies included in the sanctions lists.
The recommendations of the European officials said that “any bank must be careful and exercise due diligence” to guard against such a scenario.

Source: blogspot