Russia sends dollar-bond in roubles as it looks set to defy sanctions

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Russia sends dollar-bond in roubles as it looks set to defy sanctions

Russia’s Finance Ministry had issued a statement earlier on Thursday saying that it had sent two-dollar denominated Eurobonds’ interest pay-offs worth a whopping $236 million in roubles into the National Settlement Depository, as Kremlin appears to be defying an attempt to stem a structured default.

In factuality, after the EU and US had frozen nearly a third of Russ Central Bank’s $640 billion worth of war-chest in late-February, the world’s third-largest at that time, far-right European leaders were expecting that Russia would fail to make payments on its $40 billion worth of international bonds.

Instead, the Russ economy shows extreme resilience to sanctions from EU and US, as the nation’s Central Bank had downsized its benchmark borrowing cost to a pre-February level of 9.5 per cent and inflation seems to be slowing down at a much-faster than anticipated pace.

According to the statement from Russian Finance Ministry, the latest Eurobonds payments worth of $236 million are due to be matured on 2027 and 2047. Besides, adding that the Russ Finance Ministry had fulfilled its obligation, the Ministry said in a statement, “Obligations on servicing the state securities of the Russian Federation were fulfilled by the finance ministry in full”.

Russia sends two Eurobonds payments

Apart from that, latest move from Russ Finance Ministry came forth just a day after President Vladimir Putin had signed off a legislation on Wednesday which in effect would set off a temporary process to fulfil Moscow’s debt obligations.

Besides, in order to avert the sanction, the special decree has added that the Eurobonds’ holders, whose ownership rights lie within Russia’s financial system, would be paid in roubles, while the bondholders residing in countries where funds could not be transferred due to sanctions, would have to open an account in rouble in the NSD in order to obtain the fund.

Nevertheless, the whole process has been met with a clutch of praises from lawyers and analysts across the globe, as the move would comfortably offset the legal complications spiralling around Russia’s coupon payment.

According to a Bloomberg report, Kremlin has been harvesting around a $1 billion a day from sales of energies across the globe since early-March, as it explores newer oil markets aimed at retaliating sanctions from the far-right leaders in US and EU. ` `