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Kremlin divulges Eurobond payment arrangement similar to gas-for-rubles system

The system has proved convenient both for sellers and for buyers amid current conditions, Dmitry Peskov pointed out
Russian Presidential Spokesman Dmitry Peskov Mikhail Metzel/TASS
Russian Presidential Spokesman Dmitry Peskov
© Mikhail Metzel/TASS

MOSCOW, May 30. /TASS/. The experience of payments for Russian gas in rubles has proven itself to be beneficial both for sellers and buyers, which is why this principle could also be used for Eurobond payments, Kremlin Spokesman Dmitry Peskov told reporters on Monday.

"This question needs to be posed to the Finance Ministry. But overall, the experience of the gas [for rubles] arrangement, for example, has proven itself to be expedient both for sellers and for buyers given the current conditions. So why not use it, just in reverse?" he said when asked to what extent this system has been developed for Eurobonds, and whether it might be applied before the June coupon payments.

Peskov urged people to address a relevant agency for details though.

Earlier, Russian Finance Minister Anton Siluanov told Vedomosti, a nationwide daily, that Moscow planned to make payments to Russian Eurobond holders through a mechanism similar to the system of paying for Russian gas in rubles. In order to do this, foreign investors will have to open foreign currency and ruble accounts in a Russian bank, the published information revealed.

Previously, Siluanov said that Russia was hammering out a mechanism enabling it to service its external debt in rubles due in June, adding that it would continue upholding its image of a reliable borrower despite the West’s restrictions on its state debt payments.