Western sanctions are difficult to repay foreign debt, and Russia uses ruble payment for the first time

According to Tas Society reported on June 23, Russia used a new mechanism to fulfill the repayment obligation of European bonds, and Russia used rubles for transfer payment under the mechanism. Anton Siluanov, the Minister of Finance of Russia, said on Thursday that Russia terminated foreign currency payment of euro bonds and transitioned to ruble payment, which did not mean that international debt defaults. Properly fulfill the promise. At present, Russia has completed the payment of the first payment.

Picture source: Screenshot of Tas News Agency

According to Xinhua News Agency, Silu Annov stated on May 30 that Russia plans to learn from the "ruble settlement order" of natural gas trade to repay foreign debt with ruble to avoid sanctions from Western countries.

According to Russia's CPPCC, on June 22, Russian President Putin signed an order to fulfill the obligations of foreign debt through the temporary ruble account. The document stipulates that without representing the present, the ruble settlement account is opened in the name of one or more foreign reserves, and the beneficiaries are the holders of Russian European bonds. The President's Order also pointed out that after paying the ruble according to the exchange rate of the settlement date, debt will be considered to be settled.

In this context, Tas News reported that on Thursday, the Russian Ministry of Finance announced that it had paid the first amount in accordance with the new rules. It transferred 12.51 billion rubles (US $ 2348.5 billion) to the National Settlement Storage Office (NSD) for paying a number of bonds due in 2027 and 2047.

In an interview with reporters, Silu Anov emphasized that changing payment currency does not mean that Russia announced its debt. He explained that Russia's sovereign debt repay the transition to the ruble was just because foreign traders refused to handle foreign currency payment.

According to CCTV News, on the 23rd local time, the Russian Ministry of Finance issued news that Russia's use of rubles to pay foreign debt does not mean debt defaults, but the United States and the European Union manufactured debt -repayment, intending to label Russia on "breach of contract".

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