The Ministry of Finance of Russia confirms the fulfillment of its financial obligations and refuses to recognize "default"

The Russian Ministry of Finance responded to media reports about Russia’s default on foreign debt and stated that it had fully fulfilled its obligations to pay money on Eurobonds for 2026 and 2036.

In a statement today, the Russian Ministry of Finance said that on May 20, 2022, it paid the money due on bonds for 2026 and 2036, and the ministry refused to acknowledge that there was a default due to investors not receiving money through procedures from third parties, stressing that he transferred funds .

The ministry explained that they paid the money to Eurobond holders on May 20, 2022, before the expiration of the license of the Office of Foreign Assets Control of the US Treasury Department on May 25.

The ministry recommended that foreign investors apply to financial institutions that accompanied money transfer operations in case they were not received, since these institutions are not controlled by the Russian Ministry of Finance.

Bloomberg previously reported that Russia defaulted on $100 million in foreign debt in light of Western sanctions.

She noted that Russia defaulted on its foreign debt for the first time since 1918, but this time the markets are dealing with “a unique scenario of a troubled borrower who has the will and the resources to repay but cannot do it.”

Source: RIA Novosti

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