Photo: SVEN HOPPE/DPA/PICTURE ALLIANCE / Deutsche Welle
Russia assured today that it will continue to meet its obligations and pay the interest on its foreign debt, but it will do so in rubles, after informing the US Treasury Department of the end of the exception that allowed to Moscow to make these payments in dollars.
“The Russian Ministry of Finance, as the responsible borrower, confirms its willingness to continue the service and payment of all the debt obligations”, said the department headed by Anton Siluánov, in a statement.
“Taking into account that the refusal (of the USA) to renew the license makes it impossible to continue with the payment of the state foreign debt in dollars, the disbursements will be made in the currency of the Russian Federation with the possibility of its subsequent conversion to the original currency of the obligation”, said Finance.
US size
The US Treasury Department reported last night that “The Office of Foreign Assets Control (OFAC) does not renew the provisions of general license No.9C” that authorized the payment of Russian debt or securities in dollars.
The US adopted this exception shortly after the imposition of US sanctions against Russia for its military intervention in Ukraine, but on a temporary basis to give foreign investors time to adjust or dispose of their investments.
The end of that exemption comes two days before the next Russian debt payment is due, which is about 80 million dollars in interest on two debentures. According to the Wall Street Journal, which quotes the Russian press agency Tass, the authorities would have already made this interest payment.
Not counting this payment of 27 May, Russia must assume others 12 payments before the end of the year.