The exemption will expire on May 25, and the US has already indicated that it will not extend it. Russia would then virtually not be able to repay the bonds and would be insolvent.
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The Russian Ministry of Finance said that it had sent USD 71.25 million (CZK 1.7 billion) to pay for coupons from dollar Eurobonds due in 2026 and another EUR 26.5 million (CZK 653 million) to pay for coupons from euro bonds due in 2036. Payments were to be made in a week.
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Russia has been facing insolvency since Western countries imposed extensive sanctions on it over Russia’s invasion of Ukraine in late February. The country was almost cut off from the global financial system and about half of its foreign reserves were frozen.
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Neuberger expert Berman Kaan Nazli says the strategy is that Russia does not want to be blamed for insolvency.
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Russia’s finance minister, Anton Siluanov, said on Wednesday that Moscow would repay its foreign debt in rubles if the United States blocked other options and would not call itself a defaulter because it had the means to repay.
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