The Ministry of Finance has developed a draft decree on the payment of debts on foreign currency state guarantees in rubles

Ministry of Finance has prepared a draft decree President, according to which Russia will pay in rubles for state guarantees provided in foreign currency. This applies to both Russian legal entities and individuals, as well as other countries and international organizations.

According to the decree, the amount of unfulfilled obligations in foreign currency will have to be indicated by its beneficiary in rubles at the exchange rate of the Central Bank of Russia on the date of the demand. The money will be transferred to the bank account of the beneficiary or a third party opened in Russia.

As indicated in the department, Russia’s ability to fulfill foreign exchange obligations is severely limited due to the geopolitical situation. The Ministry of Finance believes that these changes are necessary in order to prevent technical defaults due to the impossibility of transferring the currency.

“The requirements of the beneficiaries for the execution of state guarantees, containing provisions on the transfer of funds in foreign currency, are not subject to satisfaction,” the document says.

Since April, the Ministry of Finance has been paying Eurobonds in rubles due to the refusal of a foreign counterparty bank to execute orders in foreign currency. In June, President Vladimir Putin signed a decree allowing companies to pay Eurobonds in rubles due to sanctions against Russia. In November, the Finance Ministry allowed the possibility of exchanging Russian Eurobonds for Russian securities.

Anastasia Larina