Russia will prepare a mechanism for settlements with investors without an OFAC license From IFX
Russia will prepare a mechanism for settlements with investors without an OFAC license
By June 23-24, when the next coupon payments on dollars to Eurobonds are scheduled to be transferred, Russia will prepare a mechanism that will allow settlements with investors without the permission of the US authorities, Finance Minister Anton Siluanov said.
The license expired on May 25, OFAC did not renew it. So far, the Ministry of Finance has been able to make all payments on external debt in the issue currencies – dollars and . However, after the OFAC license expires, it is possible to develop payments in Russian dollars. Payments on Russian currency Eurobonds that fell on May 27 (coupon payments on eurobonds “Russia-2026” and “Russia-2036” in dollars and euros), the Ministry of Finance ended in the address of NSD, the paying agent for this issue, in advance, even before the expiration of the license OFIA.
On June 23, there are payments immediately for the US dollar issue – “Russia-2027” and “Russia-2047”, on June 24 – for another dollar issue – “Russia-2028”.
Siluanov recalled that in recent years, the Ministry of Finance provides for the issuance of sovereign Eurobonds for payment in rubles. “But the returns that were made in previous years do not retain such norms. Therefore, we will comply, in the main cases, with these conditions, which provide for the possibility of payment in rubles with conversion into foreign currency. We are currently preparing such proposals in the government. And, I think Such a mechanism will be prepared,” he said in an interview with Naila Asker-zade on the Rossiya 24 channel.
“In this case, we will interact with investors related to Western countries. For us, this is the most important thing,” the minister said.
There is no way to fulfill obligations on eurotechnics, he said. “Europeans do not use such foreign solutions (like the US Treasury). in the absence of any difference, since investors gave us a loan,” Siluanov said.
Russian holders of Eurobonds of the Ministry of Finance, receiving payments on them in rubles, will, like foreign investors, “have the opportunity, of course, to be converted into any foreign currencies,” the minister said.
Asked if the Ministry of Finance had records of foreign debt service consumption under surveillance, Siluanov unexpectedly replied that Russia “maintains a reliable surveillance status” and will do everything to fulfill its obligations.