(Reuters) – The Russian finance ministry said on Wednesday it had to pay roubles to holders of its dollar-denominated Eurobonds maturing in 2022 and 2042 as a foreign bank refused to process Russia’s order to pay $649.2 million to holders of its debt.
The finance ministry said the foreign bank, the name of which it has not disclosed, rejected Russia’s order to pay coupons on the two papers and also did not process the payment of the face value of the Eurobond maturing in 2022.
Russia may consider allowing foreign holders of its 2022 and 2042 Eurobonds to convert rouble payments into foreign currencies once Russia’s access to its forex accounts is restored, the finance ministry said.
Russia’s ability to fulfil its debt obligations is in focus after sweeping Western sanctions in response to what Russia calls “a special military operation” in Ukraine have frozen nearly a half of the country’s state reserves and limited Moscow’s access to global payment systems.
(Reporting by Reuters; Editing by Mark Potter and Hugh Lawson)
