Russia plans to repay in ruble its next Eurobond coupon, which expires later in June, the TASS news agency reported on Friday, citing Russian Finance Minister Anton Siluanov.
Speaking at the St. Petersburg International Economic Forum, Siluanov said investors would be able to convert ruble payments into other currencies.
Eurobonds are international debt issues in a currency other than the currency of the country in which they are traded, often in dollars.
With US sanctions preventing Moscow from continuing to service its dollar bond payments, Russia is looking for ways to avoid bankruptcy, as repaying debts in a currency other than the terms of the issue could to be considered a credit event.
It is noted that the Russian Minister of Finance Anton Siluanov reportedly stated earlier this month that foreign holders of Eurobonds would have to open accounts in rubles and hard currency in Russian banks in order to receive repayments, ie a mechanism similar to that requested by the Kremlin for gas payments.
At the beginning of June, the non-payment by Russia of monthly interest on a dollar bond was officially judged as a credit event by the competent Credit Derivatives Committee.
Source: Capital
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