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Russia announced that it will pay foreign debt in rubles

The speaker of Russia’s lower house of parliament announced that the country plans to pay its foreign debts in rubles, after Russia was blocked from paying foreign currency debt to US bondholders.

“The United States and satellites that support Washington’s decision should get used to the ruble,” State Duma Speaker Vyacheslav Volodin announced on his personal Telegram channel today (May 25), according to Russia Today.

Mr. Volodin also cited Russia’s experience in demanding payments in rubles for gas shipments, as an example that shows how debt payments in the Russian currency can still work.

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Speaker of the State Duma (lower house) of Russia Vyacheslav Volodin. Photo: Sputnik

The Russian Finance Ministry also issued a statement on the same day confirming that Moscow will continue to fulfill its obligations to pay its state debts, despite tightening external restrictions.

“The decision of the US Treasury Department to refuse to renew the license (foreign currency debt repayment) … first of all violates the rights of foreign investors to Russian debt settlement instruments, and makes weakening confidence in the financial infrastructure of the West,” the Russian Finance Ministry said, adding that the agency “as a responsible borrower, will be ready to continue servicing and pay all its debt obligations”.

Earlier, the US Treasury Department announced on May 24 that it would not renew the sanctions waiver to allow Russia to pay state debts to US investors. Washington officials said that this move would put Moscow into a “technical default” from the time the waiver expires at 4:01 a.m. GMT (about 11:01 a.m. GMT). morning Vietnam time) on May 25.

Russian Finance Minister Anton Siluanov criticized Washington’s decision, saying Russia faced a “fake situation created by an unfriendly state”. Mr. Siluanov also noted that “the current situation is not the same as in 1998, when Russia did not have enough money to pay its debts”, and emphasized “we have the money and are ready to pay”.

Russia’s next debt payment due date will be on May 27, when the country has to pay interest on two types of bonds worth $106 million, of which one can only be paid in dollars, euros, pounds or pounds. Swiss Franc. By the end of June, Russia will have to pay the total debt of nearly 400 million USD.

Traditionally, a country would be declared “insolvent” if it failed to pay its debts within 15 to 30 days of the due date. This will damage the reputation of the financial system in this country, and creditors have the right to use legal remedies to claim benefits.


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