Russia's debt dealings have left analysts scratching their heads, with the country set to close the book on its first Eurobond issue since sanctions were imposed on Moscow.
The U.S. dollar-denominated issue is the first Eurobond placement in the two years since Moscow was slapped with sanctions over its intervention in Ukraine and has been organized without the help of any Western banks. A Eurobond is a bond sold outside the country in whose currency it is denominated.
According to Russian news agency, RIA, investor demand for the 10-year paper had amounted to $6.3 billion by Tuesday morning.
Nomura's Timothy Ash said Tuesday that the bond looked 'half-baked' and the Russian Ministry of Finance risked looking stupid.
"It seems to just show weakness, not strength, so why bother? Are the Russian authorities so desperate for the cash?," Ash said in an email.
"I cannot quite understand why the Russians came with this issue, which has no Western banks lead managing, no Western paying agents and the bond is not euro-clearable. So it is very hard for Western institutional investors to participate."
A deal notice issued to investors Monday showed Russia was selling the Eurobond with a guided yield to between 4.65 and 4.9 percent.
Maria Radchenko, senior analyst on fixed income at BCS Prime expects the yield will be less once the settlement date is fulfilled on Friday May 27.
Radchenko told CNBC that the announcement of the Eurobond and its forecast yield, caused a sell-off in Russian sovereign bonds.
"At the same time, there were no corresponding sales in Russian corporate Eurobonds, thus we can't say that investors' appetite to Russian risk is cooling down," she said Tuesday.