The Ministry of Finance of the Russian Federation, in accordance with the presidential decree, paid a coupon in rubles on Eurobonds for a total of 8.5 billion rubles. maturing in 2028. The equivalent of $159.4 million was received by the paying agent for Eurobonds – the National Settlement Depository, said in a statement from the ministrypublished June 24th.
On June 22, the President of the Russian Federation signed a decree on the temporary procedure for payments on external foreign currency public debt. To fulfill its obligations, Russia can now open ruble accounts in the name of foreign depositories. The beneficiaries of them will be the owners of securities and “other persons”, in the manner established by the Ministry of Finance and the Central Bank. Obligations under Eurobonds are recognized as fulfilled if settlements were made in rubles “in an amount equivalent to the value of obligations in foreign currency”.
The Ministry of Finance of the Russian Federation explained why the transition to Eurobond payments in rubles does not mean a default. The Russian Federation does not refuse to fulfill its obligations under government securities and, as a responsible borrower, takes all possible steps to bring funds to investors in full. The termination of payments on Russian Eurobonds in foreign currency and the transition to the ruble scheme are connected with a force majeure event.