UPDATE: Official: Sanctions not to hit non-resident presence on OFZ market

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MOSCOW, Sep 7 (PRIME) -- The Finance Ministry does not expect a massive exit of foreigners from Russia’s state debt sparked by fresh sanctions speculation and is sure that their share will remain high even in case of sanctions, Konstantin Vyshkovsky, director of the ministry’s state debt department, told reporters on the sidelines of the Moscow Investment Forum on Friday.

“Russia’s sovereign debt is still very attractive for investors, they are unlikely to get such a yield to risk ratio (anywhere else). That is why unless there are conditions which make it fully impossible for investors, their considerable presence will persist,” he said.

The share of non-residents is still high despite a decline to 26-27%, Vyshkovsky said.

The Finance Ministry sees that investors are nervous, but there is no reason for panic although possible sanctions against Russia’s state debt will inevitably hurt the local market, he added.

The Finance Ministry canceled the latest OFZ government bond auction, but sees no need to suspend the auctions and will monitor the market sentiment, the official said, adding that the auction should be held carefully to prevent any pressure on the market.

Vyshkovsky also said that the central bank may theoretically buy out OFZ bonds from the market in case of a drastic rise in volatility, but the Finance Ministry does not plan to use the instrument yet.

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