The amount of the payment was not disclosed, but earlier this month Russia’s Finance Ministry said it had tried to pay a $ 649 million payment expiring on April 6 for two bonds to an unknown US bank – formerly known as the JPMorgan Chase. At the time, tougher sanctions on Russia’s invasion of Ukraine prevented the payment from being accepted, so Moscow tried to pay off the debt in rubles. The Kremlin, which has repeatedly said it was financially capable and willing to continue paying for its debts, had argued that the emergency had given them a legal basis to pay in rubles, instead of dollars or euros. Investors and rating agencies, however, disagreed and did not expect Russia to be able to convert the rubles into dollars before the 30-day grace period expires next week, leading to speculation that Moscow is heading for a historic bankruptcy. Russia has not defaulted on its foreign debts since the Bolshevik Revolution of 1917, when the collapse of the Russian Empire led to the creation of the Soviet Union. Bankruptcy government – insurance policies designed to protect against bankruptcy – had already ruled that Russia was defaulting. Finance Ministry officials, who declined to be named because they were not authorized to speak, said Russia had used its foreign exchange reserves currently out of the country to make the payment on Friday. Since the US imposed sanctions on Russia’s central bank early in the conflict, Russia has only been able to use either new revenues from activities such as oil and gas sales or from existing foreign exchange reserves outside the country. The United States is trying to force Russia to use its foreign exchange reserves — or revenues from oil and gas sales — to deplete the country’s financial resources. The Russian Finance Ministry said it had made the payments at a Citigroup branch in London. A Citi spokesman declined to comment on whether the bank had processed the transaction.
Hussein reported from Washington.
title: “Russia Is Paying Off Bonds At The Last Minute To Avoid Bankruptcy Klmat” ShowToc: true date: “2022-10-20” author: “Maybell Paine”
The amount of the payment was not disclosed, but earlier this month Russia’s Finance Ministry said it had tried to pay a $ 649 million payment expiring on April 6 for two bonds to an unknown US bank – formerly known as the JPMorgan Chase. At the time, tougher sanctions on Russia’s invasion of Ukraine prevented the payment from being accepted, so Moscow tried to pay off the debt in rubles. The Kremlin, which has repeatedly said it was financially capable and willing to continue paying for its debts, had argued that the emergency had given them a legal basis to pay in rubles, instead of dollars or euros. Investors and rating agencies, however, disagreed and did not expect Russia to be able to convert the rubles into dollars before the 30-day grace period expires next week, leading to speculation that Moscow is heading for a historic bankruptcy. Russia has not defaulted on its foreign debts since the Bolshevik Revolution of 1917, when the collapse of the Russian Empire led to the creation of the Soviet Union. Bankruptcy government – insurance policies designed to protect against bankruptcy – had already ruled that Russia was defaulting. Finance Ministry officials, who declined to be named because they were not authorized to speak, said Russia had used its foreign exchange reserves currently out of the country to make the payment on Friday. Since the US imposed sanctions on Russia’s central bank early in the conflict, Russia has only been able to use either new revenues from activities such as oil and gas sales or from existing foreign exchange reserves outside the country. The United States is trying to force Russia to use its foreign exchange reserves — or revenues from oil and gas sales — to deplete the country’s financial resources. The Russian Finance Ministry said it had made the payments at a Citigroup branch in London. A Citi spokesman declined to comment on whether the bank had processed the transaction.
Hussein reported from Washington.
