Established!Putin signed the president's order!Can the reverse version of the "ruble settlement order" allow Russia to avoid Western sanctions?

According to CCTV News, Russian President Putin signed a presidential order on June 22 to establish temporary procedures for paying foreign currency government debt. According to the presidential order, the use of rubles for European bonds will be deemed to be a debt repayment obligation by Russia. The amount paid from this should be equivalent to the debt value of foreign currency calculations, and calculates the exchange rate of the payment date.

On May 25, local time, Russian State Duma Chairman Volokin said that the United States attempts to make trouble for Russia by prohibiting Russia from paying foreign debt in the US dollar, but Russia will claim foreign debt with rubles.

Volokin said that the decision was to deal with the US's attempt to extend Russia's foreign bonds. At the same time, Volokin emphasized that the rubles are significantly stronger at the moment, and Russia already has experience in using rubles for settlement.

Picture source: Xinhua News Agency

Xinhua News Agency reported on May 31 that Russia's Treasury Minister Anton Silu Anov said on the 30th that Russia is considering the "ruble settlement order" method of natural gas trade to pay European bonds issued by Russia. Through this approach, Russia will be able to avoid sanctions in Western countries, pay for rubles and converts foreign holders who pay foreign currency for European bonds.

After the outbreak of the Russian and Ukraine conflict, the United States and other Western countries exerted strict economic and financial sanctions on Russia, including the prohibition of Russia's international financial information exchange systems operated by Russia's use of the Global Bank of Financial Communications (SWIFT), restricting Russia's US dollar, euro, yen, etc. The ability of major foreign exchange for commercial transactions, freezing Russian banks in European and American assets, etc., trying to solve Russia outside the international financial system.

In addition, the US government also prohibits Russia from using foreign exchange to repay debts with US financial institutions, and intends to authorize the Overseas Russian overseas assets in the form of legislation.

According to Reuters, foreign holders of European bonds are waiting for Russia to pay for the US dollar and euro, and the 30 -day width period will end at the end of June. In this regard, Russia has expressed sufficient funds and is willing to fulfill its repayment obligations.

Silu Anov said in an interview with Russia on the 30th that Russia would continue to pay foreign debt with rubles, and reiterated that Russia was a reliable borrower and will do their best to repay debts.

Picture source: Xinhua News Agency

He said that Russia pays for European bonds to consider the "ruble settlement order" of natural gas trade. According to the "ruble settlement order", "unfriendly" countries and regional natural gas buyers need to open foreign currency accounts and ruble accounts on Russian banks. When the buyer pays foreign currency, the transactions of both parties end. Next, the bank will automatically replace these foreign currencies with rubles.

According to Silu Annov, Russia is preparing to take the same way to pay European bonds, "just changed its direction." Foreign holders of European bonds need to open two accounts of foreign currencies and rubles in Russian banks. Russia pays rubles, and the funds will be converted into foreign currency to bond holders.

West Lu Annov said that through the above approach, Russia will be able to avoid Western payment systems and related sanctions. He said last month that if the West forced Russia to fall into a default of sovereignty debt, Russia will take legal operations to prove that Russia has fully fulfilled its obligation to repay foreign debt.

The proposal to pay for foreign debt is supported by the Russian Presidential Palace of Clehlin. Russian Presidential Press Secretary Dmitry Peskov said at a press conference on the 30th: "We have seen that the practice of setting up natural gas with rubles is convenient for buyers and sellers. So why do n’t we use it for it? What about European bonds? "

Daily Economic News Integrity From CCTV News, Xinhua News Agency

Daily Economic News

- END -