Putin signed a decree on paying off the national debt in rubles

Russian President Vladimir Putin signed a decree on the temporary procedure for fulfilling obligations on Russia's external debt in foreign currency.

According to the document, obligations on government Eurobonds will be recognized as fulfilled after payment in rubles at the rate on the domestic market on the day of payment. The government must within ten days choose the banks that will attract for payments to holders of government bonds.

• Problems with servicing the Russian public debt arose after the United States, the European Union and other countries froze part of the international reserves of the Russian Federation as part of sanctions due to the war in Ukraine.
• In April, Russia paid off its Eurobonds twice, despite the sanctions. However, on May 24, the US Treasury refused to renew a license that allows Russia to make payments to service its foreign debt in dollars. It expired May 25th. Without this license, the Ministry of Finance of the Russian Federation will not be able to make payments to holders of the country's international bonds if they were denominated in dollars.
• The Ministry of Finance of the Russian Federation announced that they would make payments in rubles using a mechanism similar to the payment scheme for Russian gas. Western market participants considered this an inconsistent change in the payment currency, saying they were preparing to default. According to Russian Finance Minister Anton Siluanov, the technical default threatening Russia "will not affect the economy in any way," and the country has enough currency and resources to pay off its public debt.