The two largest US banks, JPMorgan Chase and Goldman Sachs, have suspended transactions for servicing Russian debt obligations after last year's statement by US President Joe Biden, Bloomberg reports..

According to market experts, JPMorgan Chase and Goldman Sachs Group (SPB: GS) decided to stop trading in Russian debt after the US Treasury's Office of Foreign Assets Control prohibited US market participants from buying both new and existing debt and equity securities.. securities issued by a subject of the Russian Federation.

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Also stops such transactions JPMorgan.

According to the publication, the announcement of the US Department of the Treasury on June 6 about the tightening of financial sanctions caught market participants by surprise and caused a flurry of negotiations with lawyers.. Previous US policy allowed trading platforms including Goldman Sachs and JPMorgan to help clients buy cheap Russian debt on the secondary market..

It is now prohibited for US market participants to purchase both new and existing debt and equity securities issued by a constituent entity of the Russian Federation. At the same time, American investors can still sell or hold Russian debt..

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The EMEA Credit Derivatives Determination Committee (CDDC) has confirmed that the Russian Federation failed to pay almost $1.9 million in interest on sovereign bonds, which in essence and content is a default on this debt. Some investors say default on other debts is also inevitable.