Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Iranian Foreign Ministry spokesperson: No new date or venue has been set for the meeting between Araghchi and Witkoff, and no negotiations will take place until the outcome is guaranteed
Palestinian platforms: Settlers storm Al-Aqsa Mosque complex under the protection of the occupation police
Palestinian platforms: The IOF detonated a booby-trapped robot east of the al-Zaytoun neighborhood, south of Gaza City
Syrian Defense: We call on all parties in Sweida to cooperate with security forces and exercise restraint
Al Mayadeen's correspondent: The Lebanese Army is continuing its investigations and will later announce any information that does not affect the confidentiality of the investigation
Al Mayadeen's correspondent: It has not yet been determined whether the detainees belong to ISIS or another organization
Al Mayadeen's correspondent: Around 10 people of different nationalities, including Lebanese nationals, were detained
Al Mayadeen's correspondent: The Lebanese army arrested a number of people in the Matn area of Mount Lebanon with possession it has not disclosed
Gaza Civil Defense spokesman: We have strong indications that there are martyrs, injuries, and trapped people in the Salah al-Din area
Gaza Civil Defense spokesman: Citizens should avoid Salah al-Din Street because anyone who approaches it is at risk of being directly targeted

Russia makes first Eurobonds-for-rubles payment

  • By Al Mayadeen English
  • Source: Agencies
  • 24 Jun 2022 09:53
4 Min Read

Russia starts paying in rubles for Eurobonds in rubles in light of the obstacles placed by the West in its path, underlining that it did not default.

  • x
  • Russia 200 ruble banknote is shown on top of $2 banknotes
    Russia 200 ruble banknote is shown on top of $2 banknotes

Russia fulfilled Thursday its Eurobonds obligations using a new mechanism that enables it to transfer payments in rubles. The termination of Eurobond payouts in foreign currency and the transition to payment in the Russian currency does not automatically mean international debt default, Finance Minister Anton Siluanov stressed.

Siluanov underlined that creditors had no grounds to think that his country was not performing its commitments properly.

The United States had refused to renew last month Moscow's license that allowed the Russian federation to service Russian external debt in foreign currency. Later on, in early June, the National Settlement Depository (NSD) was affected by the restrictive measures taken by the European Union, prompting Russia to opt for a new mechanism.

In response, State Duma Speaker Vyacheslav Volodin announced that Moscow would make its foreign debt payments in rubles.

Citing Moscow's previous experience in asking for gas payments to be paid in rubles, Volodin said on his Telegram channel "The US and the satellites supporting Washington’s decisions should get used to the ruble."

Days later, Russian Deputy Prime Minister Alexander Novak told reporters on the sidelines of the St. Petersburg International Economic Forum that the majority of Gazprom's European clients have switched to paying for gas in rubles, accounting for 90-95% of supplied volumes (SPIEF).

Related News

Senate blames Secret Service failures for Trump assassination attempt

South Korea warns US chip tariffs threaten economy, global supply

The new mechanism, which passed Russian President Vladimir Putin's desk on June 22, grants Russia the ability to fulfill its obligations to creditors whose rights are confirmed through the national depositories, while also fulfilling its obligations to those "who cannot transfer funds under standard procedures," the Finance Ministry explained.

Putin had signed on Wednesday a decree that allowed for a temporary procedure to allow Moscow to make its Eurobonds payments. The bill says that Russia's obligations would be considered complete "if they are fulfilled in rubles in an amount equivalent to the value of obligations in foreign currency" at the exchange rate on the day the funds are transferred to the NSD, which will then take them to creditors.

For Russia to fulfill its obligations in rubles, the funds will be transferred in the currency to special accounts and adjusted in accordance with the current exchange rate until the settlement is realized.

Holders of the securities will be required to confirm their right to receive the payment while also relinquishing any potential claims against Moscow in writing, and the transfer will require the creditors to have a "personal" ruble account in a Russian bank authorized by the government. The list of authorized Russian banks will be issued by the government by the end of next week.

The finance ministry announced Thursday that it had made the first payment under the new rules, transferring 12.51 billion rubles ($234.85 million) to the NSD for the bank to pay on bonds maturing in 2027 and 2047.

The currency change is not an indication of Moscow declaring a default on external debt, and Russia only embarked on this path due to the refusal of foreign states to process payments in foreign currency, Siluanov noted.

However, the minister said, Russia taking on a new payment mechanism does not necessarily mean that the West will consider that Moscow fulfilled its obligations, as the United States and the European Union are planning on further cornering Russia and imposing more obstacles on it in order to portray it as a state that defaulted to international debt. "But everyone who is versed understands that this is not a default at all."

Russia has repeatedly underlined that it had enough money, and as of April 1, 2022, Russia's external public debt amounted to $57.143 billion, while as of June 10, 2022, its international reserves amounted to $549.6 billion.

  • United States
  • Russian debt
  • Rubles
  • Europe
  • Russia
  • gas
  • Gazprom
  • Ruble
  • Ukraine
  • European Union
Russia & NATO

Russia & NATO

As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?

Most Read

Hezbollah SG reveals war details on Al Mayadeen for the first time

Hezbollah SG reveals war details on Al Mayadeen for the first time

  • Politics
  • 8 Jul 2025
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • 8 Jul 2025
Israeli soldiers are seen in Beit Hanoun ahead of an operation by the al-Qassam Brigades, undated (Al-Qassam Brigades Military Media)

'Israel' on blast as media exposes report discrepancies in Gaza ambush

  • Palestine
  • 8 Jul 2025
Yemen Navy sinks ETERNITY C ship, shares footage of operation

Yemen Navy sinks ETERNITY C ship, shares footage of operation

  • Politics
  • 9 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
The Freedom Flotilla ship Handala as it departs for Gaza, where it aims to break the maritime blockade at a port in Syracuse, Sicily in southern Italy on July 13, 2025. (AFP)
Palestine

Freedom Flotilla's Handala departs Sicily in bid to break Gaza siege

The container ship CMA CGM Laperouse, left, docks at the Georgia Ports Authority's Port of Savannah, Sept. 29, 2021, in Savannah, Ga (AP)
Politics

US shipbuilding woes deepen as tariffs, outdated policies backfire

Gaza war raises ethical questions for ex-Obama, Biden officials
Politics

Mercenary firm tied to Gaza war crimes hires Obama-Biden PR operatives

'Israel' targets children in Gaza collecting water
Palestine

'Israel' strikes Gaza kids fetching water, blames it on 'malfunction'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS