Russia to make first foreign debt payments after gold/exchange assets frozen on Eurobonds worth $117 million
Russia’s Finance Ministry has ordered the transfer of funds to Euroclear intl depository & clearing system. Bondholders – most of whom are foreigners – will be paid in dollars
No formal bans on Russian debt servicing operations yet, but lawyers fear US sanctions and banks may refuse to make payments If the currency order is not executed, it will be transferred to investors in rubles (at central bank exchange rates)Alternatively, investors will be able to appeal to the International Court of Justice to default
