Russia’s Finance Ministry analyzes currencies for future Eurobonds issues

TASS Russian News Agency | Sep 13, 2019 at 3:59 PM

MOSCOW, September 13. /TASS/. Russia's Finance Ministry is analyzing world currencies in which new issues of Eurobonds can be denominated, Konstantin Vyshkovsky, head of the ministry's public debt department told reporters on the sidelines of the Moscow Financial Forum. According to him, the ministry is doing it facing the US restrictions related to Russia's public debt financing.

"We need to understand to what extend it will be possible ( to place Eurobonds denominated in dollars - TASS) taking into account the latest decisions of our overseas friends. They don't mention the word "dollars" there but they speak about "currencies other than the Russian ruble," Vyshkovsky said referring to the latest US restrictions.

According to him, the ministry is analyzing this issue and holding consultations with different parties involved in the placement.

Earlier, Russia's First Deputy Prime Minister and Finance Minister Anton Siluanov said that in 2020 Russia would borrow in euros or yuan but not in dollars.

In early August, US President Donald Trump put his signature to a decree concerning the procedure of enforcing provisions for the introduction of restrictive measures towards a country that has violated the US Chemical and Biological Weapons Control and Warfare Elimination Act of 1991. The act was used as a legal basis for the introduction of the first package of sanctions against Russia over the Skripal affair at the end of August 2018.

The US Department of State later said the second package of sanctions would include restrictions on Russia's debt financing by US banks in currencies other than the Russian ruble. Also, the United States will oppose the granting of loans and financial and technical assistance to Moscow from international financial institutions, such as the World Bank and the International Monetary Fund. US banks will be prohibited from participating in the primary market of non-ruble Russian sovereign debt bonds and from extending non-ruble loans to the Russian government.

In March, the Finance Ministry issued Eurobonds with $3 bln with the maturity date in March 2035 and additionally issued Eurobonds worth 750 mln euros with the maturity date in 2025. In June, the Finance Ministry places additional Eurobonds worth $1.5 bln with the maturity date in 2029 and the issue for the sum of $1 bln with the maturity date in 2035.