Putin signs presidential decree: Paying foreign debts in rubles

Putin signs presidential decree: Paying foreign debts in rubles https://whatchinareads.com/article/?uid=3448f734f3de11ec9897c7030b3aab5e

2022-06-24: [Article Link]  The information network reported on 23 June that Russian news agency Moscow 22 had reported that Russian President Putin had signed a decree on the same day concerning the temporary fulfilment of the State's external debt obligations through the Lub I account. The document provides for the opening of a class I account in the name of one or more foreign depositors, in the absence of a representative, for the benefit of the holders of Russian European bonds. The Presidential Decree states: “The amount of funds is indexed in accordance with the exchange rate established by the domestic foreign exchange market, and the obligations of European bonds are expressed in accordance with the mechanism established by the Russian Ministry of Finance in coordination with the Central Bank.” According to the report, the Russian Ministry of Finance has the right to enter into agreements with the Central Depository Office, the Bank of Russia, and other individuals. Accordingly, the Central Depository Office registers the holders of Russian European bonds, which are paid by the entrusted bank for the period specified in the certificate of issuance of the bonds. It was reported that the document indicated that after payment of the rubles at the exchange rate on the settlement date, the debt would be considered closed. At the end of May, the U.S. Treasury Department announced that it did not intend to extend Russia’s immunity from paying its foreign debt in United States dollars. The Russian Foreign Office warned that the US government’s decision first violated the interests of foreign investors and weakened confidence in Western financial infrastructure. Source: Reference Information Network