Since mid-December, the Ministry of Finance will begin directing payments on eurobonds to non-residents to Russian investors affected by the freezing of foreign securities. Such a mechanism is provided for by the new presidential directive.
The presidential decree of September 9, establishing a new procedure for payments on Russia's state eurobonds, introduces a mechanism for calculations with Russian investors holding frozen foreign assets, using payments on government debt in favor of non-residents.
The scheme will come into effect on December 15, 2023, according to the decree. From this date, the Russian Ministry of Finance plans to settle with foreign bondholders using funds from frozen foreign accounts of the National Settlement Depository (NSD), to which payments for Russian investors on their foreign securities are made.
The obligations will be considered fulfilled upon the submission of the NSD application for writing off funds from frozen accounts in the European Union in favor of holders of Russian state eurobonds.
"Further responsibility and dealings with the EU will be the responsibility of the non-residents themselves," emphasizes junior lawyer UPPERCASE LEGAL Tamrin Darbakov.
The scheme will come into effect on December 15, 2023, according to the decree. From this date, the Russian Ministry of Finance plans to settle with foreign bondholders using funds from frozen foreign accounts of the National Settlement Depository (NSD), to which payments for Russian investors on their foreign securities are made.
The obligations will be considered fulfilled upon the submission of the NSD application for writing off funds from frozen accounts in the European Union in favor of holders of Russian state eurobonds.
"Further responsibility and dealings with the EU will be the responsibility of the non-residents themselves," emphasizes junior lawyer UPPERCASE LEGAL Tamrin Darbakov.
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