Putin Signs Decree
On June 23, Russian President Vladimir Putin signed a decree on the payment of foreign currency debt in rubles. Roughly speaking, transactions will be made through a ruble account at the domestic market rate. Payment of such debt on the part of Russia will be regarded as “duly executed and paid” debt, even if other countries do not think so.
In fact, the debt in rubles will not be paid to all countries, but mainly to European countries on foreign currency debt. It is also worth noting that the ruble payment regime is temporary for the time being. The mechanism is designed to solve the problem of payments on foreign debt, which Russia faces every month after sanctions were imposed. External restrictions and blockages are introduced to stimulate a technical default of the country. However, the new mechanism can still be challenged by foreign partners due to the undesirable transition to payments in rubles.
The text of the document: “In order to perform the Russian Federation government debt obligations denominated in government securities, the nominal value of which is indicated in foreign currency, the Russian Federation has the right to send an application to a non-bank credit institution, which is the central depository, to open an “I” type account in the name of a foreign depository (without personal presence of its representative), which is maintained in rubles Obligations on Eurobonds of the Russian Federation are recognized as duly performed
Finance Minister Anton Siluanov said that the situation will be similar to the payment for gas in rubles. And the mechanisms will work according to the same scheme: enrollment of currency, exchange it into rubles: making the calculation, with Eurobonds will be the same, only in the opposite direction. According to the head of the Ministry of Finance, the scheme will allow avoiding the use of Western settlement infrastructure – all payments will be made through the National Settlement Depository. Earlier, the head of the Ministry of Finance said that the refusal of the U.S. Ministry of Finance to extend the license for Russia to pay the national debt is an “exotic measure”.
The beneficiaries will be the holders of European bonds. Basically, this is the second time Russia is trying to force Europe to pay in dollars. Moreover, the RF Ministry of Finance is observing more and more problems with the implementation of interbank accounts. For Russian holders, the mechanism is somewhat different, they will receive payments in rubles, but the indexation will be done at the foreign exchange rate. Foreigners will be able to receive money in rubles and reinvest them into ruble assets. Analysts believe that the scheme will not be popular abroad.
The decision is designed to extend the license to pay foreign debt, but already in the ruble format. The presidential decree legally fixes this possibility. The deadline for Russian Eurobond payments approaches (June 23-24). Payments will be made in rubles, and the grace period will be 15 days, rather than 30, which should be beneficial to investors. The future will show how satisfactory this policy is for the holders of these bonds.
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we make the rules—Russians do not adhere to racist immoral anglo laws–you morons prefer hyperinflation… is that 6$ per gallon gas cutting into your cocaine budget?
Russian Ruble will hit parity with bankrupt Americunt and EU deadbeat economies. Russia has the largest Forex reserves along with China, and its debt is quite minimal. We are now entering an era of BRICS global currencies. The dollar not be worth wiping ass with. The US has the highest debt and a totally bankrupt economy with growing poverty and 85% of the poverty stricken population spends over 60% or more on rents and 8 million are now homeless. Every city is worse than Indian slums with poor people living in tents under bridges. But the evil bastards keep on printing dollars and Jew fanned wars. Russia is not Iraq and the economic meltdown of the western warmongers has just started. Wait till the stupid morons freeze in the coming winter. The stupid Krauts will be hurt the most.
After the glaring success of BRICS summit more independent nations have approached chair Russia for membership. BRICS looks to expand. Saudi Arabia and Argentina were interested in joining BRICS. Uruguay, Iran, Egypt, Thailand, and a number of post-Soviet States have been invited by Russia and China to join. The Anglos are looking like totally isolated has beens. JAI RUS!
The EU countries are destroying their own economies on the blood soaked sacrificial alter of the USA.
There was no other option for Russia. When the criminals are in charge of the international finance, time to bypass them. The banking parasites controlling the Western governments have gotten away for too long with robbing the planet blind.
He just wait the right moment :). With the actual exchange rates it’s a 50% defacto haircut on russian bond for the west.
Just hope for him it didn’t boost the rubble to high…
Que vergonha para a Rússia, roubaram os grãos das safras da Ucrânia, e vende pra Turkia e resto do mundo, Putin ladrão de grãos. Ucrânia entrar pra Europa, em breve membro da OTAN.
payaso…idiota nazi
Los criminales de la OTAN han estado matando gente y robando a los países más pobres. Robaron $ 8 billones en petróleo de Irak, Siria y Libia. Eres un títere mentiroso desvergonzado.
Russias well in control!
Russia has successfully integrated its massive resources based economy to Eurasia SCO and BRICS. As even the Indian FM said “the days of Anglo imperialism are over”. If you look at Russia’s neighbors and allies like China, India, Iran even the duplicitous untrustworthy Turks, all have growing trade and cooperation with Russia. Iran has opened its deep water strategic port of Chah Bahar to facilitate Russian-Indian trade which is all in mutual Rupee and Ruble.
Iran a sustainable partner connecting BRICS to energy chokepoints: Raeisi
Iran’s President Ebrahim Raeisi says the Islamic Republic can be a “sustainable partner” connecting the BRICS group of nations to energy chokepoints and major markets around the globe given its unique geopolitical and geoeconomic position.
“We are ready to share all our capabilities and potentials, including short and cheap transportation and transit networks, the exceptional asset of trained manpower as well as significant scientific achievements to [help] BRICS realize its goals,” Raeisi said in a televised speech at the BRICS Business Forum virtual summit, which was attended by the group’s top leaders, including President Putin and leaders from Brazil, Mexico, South Africa, China, Venezuela and over 65 Asian, Latin and African nations on Friday. The Iranian President, once again reiterated unwavering Iranian support for Russia.
The Ruble is worth more than the dollar and Russia debt is only 18% of its GDP, whereas the US debt is 11 times its GDP. Who is the better bet?
now 15%, not 18
US—120%
Denmark—cheese
State debt is much less, just 56,5 bln dollars. GPD by exchange rate was 1,4 trln dollars (when 1 dollar = ~65 rubles), so the state debt is around 4% of GDP. Source is the Finance ministry.
https://minfin.gov.ru/ru/perfomance/public_debt/external/structure/?id_38=69444-gosudarstvennyi_vneshnii_dolg_rossiiskoi_federatsii_2011-2022_gg.
It shows how sad the education system here in America is, because most people listen to propaganda instead of thinking for themselves. Russia’s FOREX reserves were illegally frozen and hopefully there is a process where they can eventually get them back. The way they are able to pivot their economies towards Asia and away from EU has been amazing and I suspect that the West was either too ignorant or too stupid to realize that they could. So, what if they default? No one is loaning them anything now anyhow and they can force the world to pay them in cash instead of letting them float debt, it only hurts the world cuz there will always be a market for Russian resources.
Looks like we lost them forever. Thanks to liberal economists of Central bang and government. Though it’s not disaster, higher fossil prices allows to compensate all in few years.
I don’t know; why not Russia place a surcharge on each barrel of oil and cm of gas on unfriendly countries until that $300BB is recouped? What can the unfriendliness do, say no dice? Russia has leverage at this time, why not use it?
This is external debt of the state. Liberal MSM inside Russia and western outlets loves to manipulate and to give overall external debt of the state and private companies as the state debt. Overall external debt is around 450 bln dollars (1 April 2022, cbr.ru), so ~400 billions is share of private companies and ~50 is the state debt.
What have they been expecting when they froze (and threaten to confiscate) Russia’s foreign currency reserves ?
I seriously wonder what “The Collective West” had in mind when they went down the sanctions route.
If they planned for any if this to happen, then they are not only venal, malicious and mendacious towards their citizens/ subjects, but evil geniuses too.
I don’t buy the genius part (just watch BoJo The Clown and the EU kleptocrats in action).
I don’t think they actually thought about it, I think they succumbed to pressure from Biden and now the world is paying for it.
Perfect way to deflate the Ruble! Genius! Ruble has strengthened so much and Russia needs to get rid of its currency to stay competitive in Asian and African markets. Debt holders also win too. The dollar and Euro have weakened against the Ruble.
Congratulations “V”lad. Sure as fuck took you long enough!
Who is Vlad? Vlad is short form of Vladislav.
Cool. Russia bypassing the corrupt Zionist dominated global financial system that holds most of us and the globe in debt slavery by a financial system that was created by the Zionists to benefit themselves at our expense and to enslave whole nations to do thy bidding least they will bankrupt the country and take over that country’s resources and privatise vital economic infrastructure.
ukies only beg like amerikant….they pay w schlyuha—only ukie export
Maybe it’d be better for Russia to just pay off its foreign debt completely and have zero foreign debt then they wouldn’t have to make a payment every few months.
Iran has paid off all its debt and built a self sustaining $1.8 trillion economy. Russia needs to follow suit. The western bastards have frozen over $300 billion of Iranian funds and assets since 1979 and now they are also stealing $500 billion plus of Russian money and frozen assets. The moral of the story is never put a cent in Jew controlled western banks and get rid of SWIFT and create a Eurasian banking system. China should be withdrawing all its money from the criminal west as it is next target. Russia is doing well.
GDP of Iran is 1,4 trln dollars by PPP. Frozen (i.e. stolen) reserves — 30 billion dollars in 1979. Kazahstan’s — 16, Russia’s — ~300 (or 340), Libya’s — 70. 12 of 70 billions were placed in belgian banks, 1/2 of this sum disappeared. This is not a secret, you can read about it in MSM. 6 billion brazenly stolen! Money from libyan oil trading coming to italian banks, Italy is giving money to puppet “government” in Tripoly only. Eastern Libya (where oil fields placed) had no money from oil exports before Halifa Haftar stopped oil production and demanded to share income in equal parts for all libyans.
I haven’t frozen anyone money.
Just inform the relevant countries that the frozen assets or a portion of them IE: 50 Billion frozen, debt 30 Billion are considered as debt paid in full or paid for x number of years. If your landlord opens your safe and takes (freezes) your money he can’t also demand rent money if the bank safe held more money than the rent.
It is the bondholders duty to go to the courts and claim part of the money in dollars, which has been seized by the UK and the US, in order to have their bond debts paid. Belly aching to Russia is a nonsense, it is in their ineterests to help Russia.
Excellent!
Vladimir Putin just invented another delusional fantasy to pretend that the Russian economy didn’t collapse. The problem is that the Russian economy did collapse. That’s why the Putin terrorists are now desperately threatening Luthiania.
puppet play by lgbt rules—rectum destroyed bt Otis and leroy in oregun prison—-Russia makes the rules—-puppet must accept our rules and be raped by lgbt….
“However, the new mechanism can still be challenged by foreign partners”
Challenge? This is a great relief to them to get hold of Rubles without violating the sanctions of the Empire of Lies.