Putin signs decree on Eurobond debt obligations fulfillment
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The Russian President signs a decree on a temporary measure meant to meet debt obligations under Eurobonds to locals and international creditors.
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Russian President Vladimir Putin signing a document recognizing the independence of the Donbass republics in the Kremlin on February 21, 2022 (AP)
Russian President Vladimir Putin signed a decree on a temporary measure meant to meet debt obligations under Eurobonds to locals and foreign creditors on Saturday.
The decree detailed that Russia "has the right to send to a non-bank credit institution" an application to open a special type "I" account in the name of a foreign depository in rubles so as to fulfill obligations "under the sovereign bonds of the Russian Federation denominated in foreign currency" to residents and foreign creditors "whose rights to Russian Federation Eurobonds are registered by non-resident foreign organizations entitled, in accordance with their law, to record and transfer rights to securities."
The new directive also nullifies the one issued on June 22, 2022, which outlined the mechanism for meeting such commitments.
Last June, Russia fulfilled its Eurobonds obligations using a new mechanism that transfers payments in Rubles.
Read more: Moody's accuses Russia of defaulting despite its rubles payment
In April, Russia's Finance Ministry announced that it had settled two issues related to dollar-denominated Eurobonds by sending 17 billion rubles ($221.1 million) in coupon payments to the National Settlement Depository (NSD).
The payments were on Eurobonds maturing in 2030, according to the Ministry.
The payments were made through the ruble-transaction mechanism, which was implemented last June in reaction to Western sanctions and US efforts to prevent Russia from making debt payments in foreign currency.
Meanwhile, Moscow accused Washington of attempting to engineer an artificial default, as the nation was completely capable of paying its debts.
