Russian President Putin signed an executive order June 22, which authorizes the payment of Russia’s Eurobond debt—the main part of Russia’s foreign debt—to be paid in a timely fashion, in Russian rubles. Today, Russia made payments in full, in rubles, on two dollar-denominated Eurobonds.
The full title of the order is the “Executive Order on the Temporary Procedure for Meeting State Debt Obligations in the Form of Government Securities with Nominal Value Denominated in Foreign Currency to Residents and Foreign Lenders by the Russian Federation.” The order’s main points are:
“Payments to holders of Eurobonds issued by the Russian Federation shall be made through authorized Russian lending institutions, the list of which is approved by the Government of the Russian Federation.
“Obligations under the Eurobonds issued by the Russian Federation shall be recognised as properly met if executed in rubles in the amount that is equivalent to the value of the obligations in a foreign currency and converted at the foreign exchange rate available on the domestic foreign exchange market of the Russian Federation on the day the Russian Federation made the payment to the central depository.
“The Government of the Russian Federation, the Finance Ministry of the Russian Federation and the Central Bank of the Russian Federation have been instructed accordingly.” (http://en.kremlin.ru/acts/news/68693/print)
