According to Moscow, Russia will now settle its foreign debt in rubles. Future payments would be “made in the Russian national currency,” the Ministry of Finance said on Telegram on Wednesday. The reason for this is that the USA had deleted a corresponding exemption for debt settlement. This makes it “impossible to continue paying off the national debt in dollars”.
The US Treasury Department had previously announced that a sanctions waiver that allowed Russia to pay off its foreign debt in dollars ended on Wednesday night (local time). In the course of the sanctions, among other things, the possibility of the Russian state being able to pay off its debts with dollars stored in US accounts was blocked. However, Moscow could still fall back on dollars held in Russia. This exception has now ended.
Russia’s Finance Minister Anton Siluanov emphasized that his country has sufficient financial resources and will also pay its debts. He dismissed the possibility of default. The current situation was “artificially created by an unfriendly country”.
Actually, the sanctions should put the Russian currency under pressure, but the data currently point in a direction that the ruble will stabilize further.