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Russia insists on paying its debt in rubles after the US refusal to process payments in dollars

MADRID, 25 May.

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Russia insists on paying its debt in rubles after the US refusal to process payments in dollars

MADRID, 25 May. (EUROPA PRESS) -

The Russian Ministry of Finance has expressed its willingness to continue to service all of the country's sovereign debt obligations, although it has warned that it will be forced to make payments in rubles, after the refusal of the United States Treasury to renew the license that until now allowed payments in foreign currency.

"The current situation has nothing to do with that of 1998, when Russia did not have enough funds to pay its debts. Now there is money, and the willingness to pay is also present," Russian Finance Minister Anton Siluanov told reporters. who is dealing with a situation "artificially created" by a hostile country.

In this regard, the Russian Ministry has lamented that the decision of the US Treasury Department infringes the rights of foreign investors who had acquired Russian debt instruments and undermines confidence in Western financial infrastructure.

In this way, taking into account that the refusal to renew the license makes it impossible to continue servicing the state foreign debt in US dollars, payments will be made in rubles with the possibility of subsequent conversion to the original currency of the obligation through of the National Settlement Depository as paying agent.

The US has announced that it will not renew the exemption that allowed Russia's sovereign debt payments to be processed "case by case" through US and international entities, which expires this Wednesday and which had allowed the Eurasian giant to avoid its first ' default' in foreign currency since 1918.

"OFAC will not renew the provisions issued that expire on May 25, 2022 at 12:01 EDT (6:01 p.m. Madrid time)," announced the Office of Foreign Assets Control (OFAC), attached to the US Department of the Treasury. .USA

The US Treasury Secretary, Janet Yellen, had already warned last week that it was "reasonably likely" that the Government would decide to let this license expire, recalling that it was a temporary measure with the aim of allowing an orderly transition so that investors could sell your securities.

Russia's Finance Ministry last week advanced payment on two bonds due this month. Russia will still have to deal with the debt due on June 23, which, once the 30-day grace period has elapsed, could lead to its declaration of default at the end of July.