Bank of Russia clarifies rules for Russian issuers’ external debt repayments

To maintain financial stability in the Russian market, protect creditors’ interests, and ensure that their Russian borrowers and debt securities issuers are able to service and repay outstanding ruble- and foreign currency-denominated debt in due time and in full amount, the Russian President approved Executive Order No. 95, dated 5 March 2022, to establish a special temporary procedure for debt servicing.

Creditors who are residents of the Russian Federation and creditors from countries that have not joined sanctions against Russia will be able to receive repayments on Russian residents’ current debt obligations within the respective periods in rubles in the amount of the ruble equivalent at the exchange rate as of the moment of the repayment or, provided there is a special permit, in the currency of the debt.  The Executive Order does not restrict the use of rubles received by creditors, including with regard to foreign exchange transactions.

Ruble repayments on debt obligations to creditors from the countries that have imposed sanctions against Russia will be credited into C-type accounts opened with Russian and foreign credit institutions. The mode of C-type accounts to be stipulated by the relevant decision of the Bank of Russia provides for the possibility to make transactions with securities recorded in C-type accounts, tax payments, and transfers between C-type accounts.