By John Meyer, financial consultant. Eurasia Business News – April 30, 2022

Headquarters of the Bank of Russia, Moscow. Photo credit : Eurasia Business News.

The Russian Ministry of Finance fulfilled its obligations under Eurobonds in foreign currency. We are talking about the issues “Russia-2022” (coupon income and face value, in the amount of $564.8 million) and “Russia-2042” (coupon income, in the amount of $84.4 million), reported the state body.

The US dollars were brought to the payment agent for these Eurobonds (Citibank, N.A., London Branch). Payments were made in the currency of the issue of the corresponding Eurobonds – in US dollars. 

Payments were made in the currency of the issue of the respective Eurobonds – in US dollars. Thus, the obligations for servicing sovereign Eurobonds are fulfilled in compliance with the conditions established by the issuance documentation,” noted the Ministry of Finance.

Earlier, Western countries imposed several rounds of sanctions against the Russian financial and monetary system, which, among other things, affected gold and foreign exchange reserves stored outside the country. Because of this, access to some of the funds that were used by Russia was blocked (in dollars, euros and pounds – about $300 billion, that is, about half of the total reserves).

The Russian Finance Minister Anton Siluanov noted the West’s attempts to provoke Russia’s default, stressing that the Russian Federation is ready to go to court if the West tries to default on its obligations. Vladimir Putin, on March 16, announced that the United States and the EU had defaulted on their obligations to Russia.

A number of Western countries at the end of February 2022 imposed sanctions on operations with the Bank of Russia and the Ministry of Finance of the Russian Federation, limiting Russia’s ability to use part of the gold and foreign exchange reserves. On the eve of OFAC (a division of the US Treasury) explained that transactions with gold from the reserves of the Russian Federation fall under previously adopted sanctions (that is, operations with this asset carry sanctions risks for counterparties). The Central Bank said that all the gold from the international reserves of the Russian Federation is in its vaults in Russia.

Read also : How to invest in gold

On March 1st, the United States issued a directive prohibiting Americans from any transactions with the Bank of Russia, the Russian Federal Ministry of Finance and the Russian National Welfare Fund (NWF). Similar decisions were announced by the UK, Japan, Canada, and Switzerland.

Earlier, on February 28, the European Union approved the decision to freeze the assets of the Central Bank of the Russian Federation. Freezing of international reserves of the Central Bank of the Russian Federation was also included in the sanctions package of Australia.

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