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Enlarge / WASHINGTON, DC - JANUARY 19: Former Texas Governor Rick Perry, President-elect Donald Trump's choice as Secretary of Energy, testifies during his confirmation hearing before the Senate Committee on Energy and Natural Resources on Capitol Hill January 19, 2017 in Washington, DC. (Photo by Aaron P. Bernstein/Getty Images)

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Last week, US Department of Energy Secretary Rick Perry took a phone call from two men he thought were the Ukrainian Prime Minister and his translator. But the 22-minute-long phone call was actually two Russian pranksters, Vladimir Vovan Kuznetsov and Alexei Lexus Stolyarov, otherwise known as the Jerky Boys of Russia, in the style of an American prank call duo from the 1990s, according to Bloomberg.

The Washington Post confirmed the conversation with the Department of Energy. In audio originally posted on a Russian website and reposted elsewhere, the dialogue touched on a Baltic Sea pipeline that would pump Russian gas, as well as an expansion of coal and oil and gas interests in Ukraine. Early in the conversation, Secretary Perry tells the pranksters that the [Trump] administration is broadly supportive of sanctions against Russia at this particular point in time, and later he offers that negotiation is always possible on coal exports to Ukraine.

The Secretary also advised the Prime Minister that, without transparency about regulations and geological data about where wells have been or could be drilled, it would be hard for the US to help oil and gas companies expand exploration in Ukraine.

Perry also told the men that the US was very interested in working with Ukraine on the civil nuclear side and noted that thats what theyd discuss in an upcoming meeting. Between coal, oil and gas, and nuclear, this August meeting can be very productive, Perry said.

Perry also took questions from the men about the Paris Agreement, which the Trump administration intends to withdraw from. I hope that stepping away from the Paris accord will not have any negative impact with our relationship with the Ukraine, Perry said on the phone. We tried to divorce the politics from this and really just let our record stand, one that Im very proud of.

According to the Washington Post, the duo played it straight the whole time, including duringa part of the call when Kuznetsov and Stolyarov told Perry that Ukrainian President Poroshenko had invented a new biofuel out of pig manure and alcohol.

The Russian pranksters have allegedly duped Elton John and John McCain in the past. But how these two men got Perry on the line is unclear. Calls between Cabinet secretaries and foreign officials are typically closely vetted; its not clear how the pranksters connected with Perry, Bloomberg wrote.

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US Energy Secretary takes 22-minute prank call from Ukrainian Prime Minister - Ars Technica

U.S. President Donald Trump has criticized Attorney General Jeff Sessions, calling his former ally "very weak" in investigating intelligence leaks and for failing to probe former Democratic presidential candidate Hillary Clinton.

Meanwhile, the Reuters news agency has reported that Trump has spoken privately to his political allies in recent days about the potential consequences of firing Sessions.

But at a press conference on July 25, when asked about Sessions' future as attorney general, Trump avoided saying whether Sessions would be fired -- saying instead that "time will tell."

Trumps anger over Sessions' decision to recuse himself from the government's investigation of Russias alleged interference in the 2016 presidential election became public on July 24 when Trump referred to the attorney general in a tweet as "beleaguered."

Last week, Trump said he never would have appointed Sessions to be attorney general -- the chief U.S. prosecutor -- if he had known that Sessions would recuse himself.

"Attorney General Jeff Sessions has taken a VERY weak position on Hillary Clinton crimes (where are E-mails &DNC server) & Intel leakers!" Trump tweeted on July 25.

His remarks came after the Washington Post, citing unnamed sources, reported that Trump and his advisers have discussed replacing Sessions.

Trump also called on Sessions to investigate Clinton's use of a private server to send e-mails when she was secretary of state.

Trumps tweets, and mounting pressure on Sessions, have fueled speculation in Washington that the attorney general may resign even if Trump doesnt fire him.

But several people close to Sessions have said he does not plan to quit.

Fiery Response

Meanwhile, Trump's criticism of Sessions has drawn a fiery response from some Republican lawmakers -- suggesting that not all Republicans will support a presidential effort to oust the attorney general.

Senator Lindsey Graham, a Republican from South Carolina, said on July 25 that "Trumps tweet today suggesting Attorney General Sessions pursue prosecution of a former political rival is highly inappropriate."

"Prosecutorial decisions should be based on applying facts to the law without hint of political motivation," Graham said. "To do otherwise is to run away from the long-standing American tradition of separating the law from politics regardless of party."

Trump's tweets on July 25 also accused Ukraine of trying to "sabotage" his campaign, without offering any evidence.

Ukraine's embassy in Washington denied Trump's allegations with a tweet of its own saying, "We stand by our words that the government of Ukraine didn't help any candidate" in the U.S. presidential election.

The Ukrainian embassy also said "Ukraine is proud of bipartisan support" in the United States.

Ukraine's permanent representative to the Council of Europe, Dmytro Kuleba, also responded on Twitter to Trumps allegations.

"Trump writes that we interfered in the elections in the USA, while Putin says that we threaten Russia," Kuleba said. "There was a time when we were peaceful buckwheat sowers who kept themselves to themselves."

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Trump Attacks Sessions, Accuses Ukraine Of 'Sabotage' - RadioFreeEurope/RadioLiberty

This is post 2 of 4 in the series Hungry for Yield? These Emerging Markets Can Satiate Your Appetite

Political quarrels are a dark side of the relationship between Russia and Ukraine. The bright side is the commonality they share pertaining to their fixed income markets: high yields. Just as India and Indonesia lead Asia in terms of attractive yields, Russia and Ukraine do the same for Eastern and Central Europe.

The graph below shows that yields on the 10-year notes of both countries have declined since the beginning of the year. But in the emerging markets universe, these yield levels are still quite elevated comparatively.

This is reflected in the Eurobond issuance conducted by the country in June.

In June 2017, Russia sold 10 and 30-year Eurobonds worth $1 billion and $2 billion respectively. The issuance was oversubscribed over two times with a total order book of over $6.6 billion. The issue was beneficial for the country as well because yields of 4.25% and 5.25% respectively were the lowest in its history.

The bonds popularity can be further gauged from the fact that the sale came on the same day that the US Senate extended sanctions to some Russian individuals and firms in connection with the countrys annexation of Crimea from Ukraine in 2014.

This led to some US investors pulling out of the sale along with some European buyers because VTB Capital the sole arranger of the sale was also subject to sanctions. But even then, the order book remained strong.

The outlook for Russian bonds looks a bit hazy at this juncture. From purely an investment perspective, yields are attractive and have some room to decline further, thus providing a buying opportunity.

In YTD 2017 until July 17, yields have decline by 64 basis points. Bloomberg reported that Viktor Szabo, an asset manager with Aberdeen Asset Management believes that yields on Russias 10-year notes could drop to 7%.

Related Article Spreads Tell A Story: Emerging Markets Bonds Are Running Out Of Breath

However, the possibility that extended sanctions may be passed by the US House of Representatives is a cause for concern. The bill, in its current form, does not place any restrictions on sovereign debt or derivatives from the country, but has asked for a report on the impact any limits can have.

This leaves the possibility open for either limits or a complete ban on Russian sovereign debt. Foreign investors have already become cautious.

Central bank data had shown that foreigners share of Russias ruble securities, known as OFZ bonds, had surged to an all-time high of 30.7% in May. However, on July 13, central bank First Deputy Governor Ksenia Yudayeva said that this share had fallen below 30%.

The other aspect to track is currency. After having strengthened against the US dollar until April, the Russian ruble (RUB) has been weakening. This does not bode well for local currency bonds when converted into US dollars.

Points to ponder: Ukraine

As far as currency is considered, the Ukrainian hryvnia (UAH) has risen against the dollar in YTD 2017, which makes its local currency denominated bonds attractive. However, these bonds are still not eligible for clearing through Euroclear.

Finance Minister Oleksandr Danylyuk has said that the country is serious about making the countrys bonds Euroclear-able soon. This would certainly enhance the appeal of the bonds as trades will be settled easily.

Both countries have further plans for their fixed income markets this year and beyond. Russia plans to swap $4 billion of old foreign bonds for new ones this year. Meanwhile, Ukraine expects to raise Eurobonds worth $2 billion in 2018.

However, geopolitical developments and currency movement will determine their future appeal.

This is post 2 of 4 in the series Hungry for Yield? These Emerging Markets Can Satiate Your Appetite

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Russia And Ukraine: Divided By Politics, United By Attractive Bond Yields? - Frontera News

In the run-up to Ukrainian President Petro Poroshenko's recent state visit to Georgia, there was a flurry of speculation about whether Mikheil Saakashvili might be extradited from Ukraine to face trial in Tbilisi on charges stemming from his 10 years as Georgia's president.

Since completing his second term in 2013, Saakashvili has been accused by Georgian authorities of exceeding his authority and misusing budget funds. He remains in Ukraine, where he obtained citizenship and served from May 2015 until November 2016 as governor of Odesa Oblast.

According to the office of Ukraine's Prosecutor General, that country's constitution rules out any such extradition, given that Saakashvili is now a Ukrainian citizen.

The extradition question surfaced in mid-June, when Davit Saqvarelidze, a member of Saakashvili's United National Movement (ENM) who, like him, settled in Ukraine following the ENM's defeat in the October 2012 parliamentary ballot by the current ruling Georgian Dream party, told a Ukrainian TV channel that Poroshenko had discussed the possibility with Georgian Dream founder Bidzina Ivanishvili. Even though he stepped down as Georgian prime minister in late 2013, Ivanishvili is still thought by some to dictate policy behind the scenes.

Saqvarelidze claimed that Poroshenko -- who cited Saakashvili's successes in cracking down on police and local corruption in Georgia when he invited him to take on the Odesa job in May 2015 -- is put out and fed up that Saakashvili is now openly in opposition and campaigning to bring down the Ukrainian government.

Saakashvili has repeatedly accused the Ukrainian leadership of corruption and declared more than once that he sees a major political role for himself in Ukraine "higher than the post of prime minister."

'New Rules Of The Game'

In February 2017, Saakashvili was quoted as telling the Georgian TV station Rustavi-2 that he intends "to establish completely new rules of the game" in Ukrainian politics and "bring a new generation into the political elite." He had previously characterized Ukraine's parliament, the Verkhovna Rada, as "a cemetery" and "a swamp."

Asked on July 18 about the extradition rumors, Poroshenko at first categorically denied that Tbilisi had demanded Saakashvili's extradition. "We have effective communication with the Georgian government but have not received an extradition request. It therefore follows that we haven't discussed it," the news portal InterPressNews quoted him as saying.

The following day, however, Poroshenko told Georgian journalists that he had checked and established that Georgia did indeed request Saakashvili's extradition, but that he had previously been unaware of that fact. He said Ukraine had "replied in the negative, and requested additional information."

Poroshenko went on to say the extradition issue did not figure in his talks with Georgian officials. He stressed that evaluating any such request is "the prerogative of the 'power' agencies and the prosecutor-general, who examines with scrupulous attention any demand for the extradition of a criminal." At the same time, Poroshenko said it would be "a great pleasure for us to cooperate with Georgia in investigating any crimes."

Citizenship Aspect 'An Obstacle'

Georgian Justice Minister Tea Tsulukiani, for her part, released a statement saying that Tbilisi had twice lodged a formal request for Saakashvili's extradition, backed by purported evidence against him, but both requests were turned down. (The first such request was in early 2015, before Saakashvili had been granted Ukrainian citizenship.) She said Tbilisi has complied with Kyiv's request for further information about the charges against Saakashvili.

Georgian Prosecutor-General Irakli Shotadze told journalists in Tbilisi on July 19 that talks with his Ukrainian counterpart about Saakashvili's possible extradition were continuing. Shotadze termed the citizenship aspect "an obstacle," leaving open the possibility that the two sides might be seeking a way around it.

But stripping the former Georgian president of his Ukrainian citizenship, a step that the Ukrainian Constitution seemingly empowers a president to do, could risk negatively affecting Ukraine's renewed aspiration for NATO membership.

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Does Georgia's Ex-President Risk Extradition From Ukraine? - RadioFreeEurope/RadioLiberty

WASHINGTON - The United States may arm Ukrainian government forces fighting against Russian-backed rebels, the new US special representative for Ukraine told the BBC.

Kurt Volker said Washington is actively reviewing whether to send weapons to help Ukraine, a move he says could change Moscow's approach.

"Defensive weapons, ones that would allow Ukraine to defend itself, and to take out tanks for example, would actually to help" to stop Russia threatening Ukraine, Mr Volker said in a BBC interview.

He did not think the move would be provocative, saying: "I'm not again predicting where we go on this, that's a matter for further discussion and decision, but I think that argument that it would be provocative to Russia or emboldening of Ukraine is just getting it backwards."

The US State Department last week urged both sides to uphold the ceasefire, agreed in February 2015, in eastern Ukraine.

A former US permanent representative to Nato, Mr Volker was appointed as US special representative earlier this month.

According to the United Nations, more than 10,000 people have died and 1.6 million people displaced since April 2014, when Russia annexed Ukraine's Crimea peninsula.

Meanwhile, the US House of Representatives is expected to vote overwhelmingly on Tuesday (July 25) for a Bill that would slap new sanctions on Russia, Iran and North Korea.

If the Republican-led Senate passes the measure, US President Donald Trump will need to decide whether to sign the Bill or veto it. Rejecting it would carry a risk that his veto could be overridden by lawmakers if they can muster enough support.

The Trump administration has objected to a provision in the sanctions Bill that the president obtain congressional approval before easing any sanctions on Moscow.

"He's going to study that legislation and see what the final product looks like," White House spokesman Sarah Sanders told reporters on Monday when asked whether Mr Trump would support it.

Mr Trump's relationship with Russia has been a focus of the first six months of his presidency as investigations continue into whether his associates colluded with Russian hackers to influence the election on his behalf.

Russia denies interfering in the US election and Mr Trump denies his campaign colluded with Moscow.

As the Republican-controlled House takes up the sanctions Bill, Mr Trump's son-in-lawJared Kushnerwill visit Capitol Hill for a second straight day to be interviewed about his contacts with Russian officials during the 2016 campaign and the presidential transition.

An earlier version of the Bill, including sanctions on Russia and Iran, passed the Senate 98-2 on June 15. A North Korea sanctions Bill passed the House by 419-1 in May and House lawmakers were becoming increasingly impatient with the Senate's failure to take up that legislation.

House members saw the Iran and Russia sanctions Bill as a chance finally to get the North Korea measure through the Senate.

Reuters contributed to this report.

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US may send weapons to Ukraine, new envoy tells BBC - The Straits Times