JPMorgan says U.S.-sanctioned Russian bonds could be excluded from key indexes

FILE PHOTO: A sign outside JP Morgan Chase & Co. offices is seen in New York City, U.S., March 29, 2021. REUTERS/Brendan McDermid

LONDON/NEW YORK (Reuters) - U.S. sanctions announced on Thursday on newly-issued Russian government debt could see the bonds excluded from JPMorgan's influential indexes, including the emerging market local-currency GBI-EM investment index, the bank said.

"Economic sanctions which impact the replicability of the JPMorgan fixed income indices will result in an Index Watch (observation period) followed by potential rebalance actions such as exclusion of the sanctioned bonds/issuers from the benchmark," JPMorgan said.