According to the Minister of Finance of the Russian Federation, the Russian Federation is a reliable borrower and will try to find an opportunity to pay off its obligations
Russian Finance Minister Anton Siluanov said that a technical default threatening Russia due to the fact that the United States refused to renew a license that allows servicing external debt “will not affect the economy in any way.”
According to Siluanov, the Russian Federation is a reliable borrower and will try to find an opportunity to pay off its obligations.
Russia has sufficient currency and resources to pay off its external debt, a member of the Russian government said.
The day before, the Ministry of Finance of the Russian Federation in its telegram channel confirmed Moscow’s intention to make payments on external public debt in rubles. As noted in the department, payments will be made through the National Settlement Depository with the possibility in the future to convert rubles into the original currency of the obligation.
The Ministry of Finance of the Russian Federation also stated that the decision of the US authorities “infringes, first of all, on the rights of foreign investors” and “undermines confidence in Western financial infrastructure.”
Recall that earlier the US Treasury Department announced its refusal to renew the license, which allows the Russian Federation to make payments to service external debt. The license expired on May 25 at 07:01 Moscow time. Now, in the absence of this permission, Russia will not be able to pay off government bonds and may be on the verge of default.
Russia was supposed to make the next obligatory payment in foreign currency on May 27, but the Ministry of Finance of the Russian Federation paid the required funds in advance, on May 20. The next payments are due June 23-24. As noted by The Bell, in the event that they fail to hold, after the expiration of the month, that is, at the end of July, Russia may face a formal default.
