Temporary procedure for the execution of state debt obligations of the Russian Federation in foreign currency was approved
Russia will honour all its obligations to service and redeem government securities in a timely manner.
In order to repay its Eurobonds, the Finance Ministry will issue payment orders to agent banks instructing them to execute payments in foreign currency in keeping with the timeline set forth in the corresponding emission documents. Whether the funds can be transferred will depend on the restrictions resulting from sanctions imposed on the Government and the Bank of Russia.
If a foreign correspondent bank is unable to execute the payment order, it will be recalled. In that event, the following procedure will be used to fulfil the payment obligations:
The Eurobonds will be repaid in roubles as per the exchange rate set by the Central Bank as of the payment date.
Depending on where the Eurobond certificate is kept, the National Settlement Depository will either proceed to settlements with the creditors on its own, or transfer funds to the accounts of individuals and foreign lending institutions.
“We have the required funds for servicing our debt,” Finance Minister Anton Siluanov said.
The Finance Ministry will keep the agent banks updated on its efforts to service and repay its Eurobonds as per the terms of issuance.