< br />
MOSCOW, September 6 The Russian government has approved the replacement of sovereign Eurobonds with new issues with similar conditions, according to a published decree of the Cabinet of Ministers.
“In accordance with article … of the Budget Code of the Russian Federation, the Ministry of Finance of Russia shall, in 2023, issue and transfer government securities of the Russian Federation, the nominal value of which is indicated in foreign currency, in order to replace (replace) government securities of the Russian Federation in circulation, the nominal value which are indicated in foreign currency, as agreed by their owners…”, the document says.
At the same time, it is possible to exceed the indicators of the program of state external borrowings and the upper limit of the state external debt of the Russian Federation established by the federal budget.
The size and term of payment of income, the maturity and nominal value of the replacement government securities of the Russian Federation will have to comply with the same conditions for the replacement securities.
“Due to the sanctions imposed by foreign financial institutions on Russian securities, Russia’s fulfillment of its Eurobond obligations proved to be difficult. As a result of the substitution, holders of securities will be able to replace their Eurobonds with securities with identical parameters, but issued under Russian law in the Russian financial infrastructure without the participation of foreign institutions,” commented Finance Minister Anton Siluanov.
In early August, Russian President Vladimir Putin signed a law that provides for the possibility of replacing sovereign Eurobonds of the Russian Federation with government bonds with similar basic parameters. The law introduces amendments to the Budget Code that empower the Russian government to replace traded Russian Eurobonds with new issues with similar terms upon agreement with their holders.
The Russian Ministry of Finance plans to start replacing sovereign Eurobonds in the fourth quarter, Denis Mamonov, director of the Department of Public Debt and State Financial Assets of the Russian Ministry of Finance, told reporters on Wednesday.