“Given that the refusal to extend this exemption does not allow the government to continue to pay its foreign debts in US dollars, payments will be made in Russian currency,” the Russian Ministry of Finance said.
The ministry added that it would be possible to later convert these payments into the original currency using a Russian financial institution as the paying agent.
Western sanctions against Russia have largely isolated the country from the international financial system following its attack on Ukraine, with the exception of debt payments.
This exception was lifted two days before Russia’s next debt payment.
Western sanctions have prevented Moscow from repaying its US dollar-denominated debt, forcing Russian President Vladimir Putin to use state reserves to avoid insolvency.
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