(Reuters) – The secondary trading price of syndicated loans for Russian banks is being dragged lower as Western banks seek to reduce and manage their exposure, according to Thomson Reuters LPC data.

Loans for Russian financial institutions are quoted at 98.2 percent of face value, down from 99.1 percent at the start of February, which is the lowest level since the data started to be recorded in October 2010, the data shows.

Banks are getting nervous about Russian exposure after Russia’s annexation of the Crimea region and subsequent sanctions and are starting to sell Russian loans at a discount.

This has increased trading activity in the loans, which are not usually actively traded, and is attracting interest from global and US hedge fund buyers, loan traders said.

Some Russian banks, including Vnesheconombank (VEB) have seen bigger falls due to exposure to Ukraine. VEB’s loans were quoted at 99.5 on Monday, compared to usual trading levels of 100 or more.