Russian Finance Minister Anton Siluanov. File photoMOSCOW, Apr 11Moscow is ready to prove in court that it has done everything possible to fulfill its obligations to foreign investors on its Eurobonds if the West tries to default on it, Russian Finance Minister Anton Siluanov said in an interview with the newspaper «Izvestia«.
"Of course, we will sue, because we have taken all the necessary steps to ensure that investors receive their payments. We will present our payment orders in court, confirming our efforts to pay both in foreign currency and in rubles", Siluanov said.
Western countries have imposed several tough sanctions in response to Russia's special operation in Ukraine. Among other things, new sanctions limited the ability of the Bank of Russia to use gold and foreign exchange reserves in foreign currency. The blocking of reserves, in particular, did not allow the Ministry of Finance to fulfill obligations on Eurobonds in foreign currency on April 6 due to the refusal of a foreign agent bank, as a result, the Ministry of Finance made a payment to foreign holders of securities in rubles. Investors will be able to convert them into foreign currency immediately after Russia regains access to frozen foreign currency accounts.The Ministry of Finance has no plans to enter the debt markets, Siluanov said Siluanov admitted that if the case goes to court, it will not be an easy process.
"We will have to actively prove our case, despite all the difficulties. <…> The current crisis has shown that all the basic Western foundations based on democracy, the inviolability of private property and other Western values are collapsing, so we also question the objectivity of their judicial system", the minister noted.
He recalled that the default will strike at the image of the country as a reliable borrower, so the West will send all its efforts to implement it. On February 24, Russia launched a military operation in Ukraine. In response, Western countries announced large-scale sanctions against Moscow, primarily in the banking sector and the supply of high-tech products. Some brands have announced the cessation of work in the country.
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