23 Jun 2022 15:25

Russia could not use FX reserves for payments on Eurobonds due to restrictions, payments can be relayed only in rubles - Siluanov

MOSCOW. June 23 (Interfax) - Russia could not use the reserve currencies stipulated in the bond issue documentation to make payments on sovereign Eurobonds due to restrictions, it is now possible to make payments only in rubles, Finance Minister Anton Siluanov told reporters.

"NSD, which is the payment agent for Russian Eurobonds, has been put on the European Union's 'sanctions' list and can no longer make settlements in euros. In addition, the countries issuing other reserve currencies (Great Britain and Switzerland) have imposed bans on settlements on Russia's public debt," Siluanov said.

"In this regard, we have no other way to relay funds to investors except to make payments in Russian rubles," the minister said.

On Thursday, the Russian Finance Ministry said it had made coupon payments on two issues of Russian dollar-denominated Eurobonds denominated in rubles, namely Russia-2027 and Russia-2047. The terms of both issues provide for payments in reserve currencies - euros, British pounds or Swiss francs.