Finance Ministry: Russia will pay its foreign debt in rubles

Russia indicated, on Wednesday, that it will start paying its foreign debt in rubles, after the United States decided to end an exemption that allows Moscow to pay these payments in dollars.

“Noting that the refusal to extend this license makes it impossible to continue to meet the foreign debt of the government in US dollars, payments will be made in Russian currency with the possibility of later conversion into the original currency via the National Settlement Deposit (National Settlement),” the Russian Ministry of Finance said in a statement. ).

NSD is a Russian non-bank financial institution responsible for deposits of securities exchanged in the country.

The Russian Ministry of Finance, as a responsible debtor, guarantees its readiness to continue fulfilling all its financial obligations. ”

The statement quoted Finance Minister Anton Siluanov as saying that “the current situation has nothing to do with what happened in 1998, when Russia did not have enough funds to repay its debts.” “Today we have the money as well as the desire to pay,” he added.

The United States announced that from Wednesday it would end a waiver allowing Russia to pay its foreign obligations in dollars.

The end of this concession comes two days before the next repayment of Russian debt, which amounts to an interest of about $100 million on bonds, is due.

This exemption has been in effect since the start of Western sanctions against Russia in retaliation for the invasion of Ukraine that began on February 24, and so far this exemption has allowed Moscow to escape default.

according to him The Wall Street JournalQuoting the Russian news agency TASS, the authorities had already paid this interest.

Not counting this May 27 payment, Russia will have to make 12 more payments before the end of the year.