Russian President signs decree on execution of state currency guarantees in rubles

MOSCOW. Aug 9 (Interfax) - Russian President Vladimir Putin has signed a decree allowing the fulfillment of Russia's obligations on state currency guarantees in rubles.

These state guarantees can be executed in rubles if it is the will of the beneficiary, and at the exchange rate of the Central Bank on the date of presentation of the demand. In the absence of the will of the beneficiary and if it is impossible to fulfill the obligations in foreign currency, they will also be fulfilled in rubles.

The draft decree on the fulfillment by the Russian Federation of its obligations under state guarantees provided in foreign currency, both to Russian legal entities and individuals, and to foreign ones, as well as foreign states and international organizations in rubles, was published in February.

An explanatory note to the draft says the provisions of the decree are owing to the geopolitical situation, in which the possibility of the Russian Federation to fulfill its government guarantees in foreign currency is "significantly limited and unpredictable"; and the provisions have been adopted in order to prevent a technical default on the guarantees.

Guarantees will be fulfilled by transferring funds to the beneficiary's bank account, or to the bank account of a third party, upon the beneficiary's request, as opened in the currency of the Russian Federation.

Funds are also transferred to a ruble bank account in fulfillment of obligations under state guarantees in the absence of an expression of will by a beneficiary. This account can be opened on the basis of a request submitted by the Finance Ministry on behalf of the Russian Federation, without identifying the beneficiary and their representative and without them personally being present.

The decree comes into force from the date of its official publication and will apply to state guarantees issued prior to its signing.

The right to give official explanations under the decree was granted to the Central Bank and Finance Ministry.