By Jorgelina do Rosario

LONDON, (Reuters) – The EMEA Credit Derivatives Determinations Committee stated on Thursday that it would delay a decision on how to conduct an auction for Russian credit default swaps. This was in response to U.S. sanctions updates earlier this week.

In a statement, the committee stated that it was “aiming to allow credit derivatives market players time to evaluate the implications that updated OFAC FAQs (Office of Foreign Assets Control), may have on market participants’ ability to participate in an auction”.

This committee includes Goldman Sachs (NYSE :), Bank of America(NYSE :), and others. Deutsche Bank (ETR) Elliot Management, PIMCO and PIMCO will be meeting again at 13:00 GMT on June 10.

U.S. Treasury Department released information this week about the severe sanctions Washington has placed on Moscow for its invasion in Ukraine. The measures prevent U.S. Money Managers from purchasing Russian securities or debt on secondary market markets.

The CDDC panel decided last week that Russia’s failure to pay $1.9 million in accrued interest on a dollar bond would trigger payouts potentially worth billions of dollars.

Russia’s international 2022 bond matured on April 4 and payment of principal and interest due at maturity was not made until May 2. Russia had to pay the interest for that time.

According to JPMorgan’s (NYSE:), calculations, there are $2.54 trillion in net notional CDS remaining relative to Russia. This includes $1.68 billion for the country and the rest on the CDX.EM Index.

After sanctions placed by the west and its allies against Russia after it invaded Ukraine on February 24, 2014, Russia was excluded from the world financial system.