The paying agent has received funds as part of coupon payment and partial redemption of sovereign Eurobonds “Russia-2030”, reported the RF Ministry of Finance.

This is an issue with an amortization structure, on the market Eurobonds “Russia-2030” appeared as a result of restructuring of debts of the former USSR to the London Club member countries in 2000.

“The Ministry of Finance of Russia informs that the funds for payment of coupon income and partial repayment of principal on the bonds of external bonded loans of the Russian Federation with final maturity in 2030 in the total amount of $329.2 million have been received by the payment agent for Eurobonds (The Bank of New York Mellon),” the report says.

Thus, the obligations to service government securities of the Russian Federation were fulfilled by the Ministry of Finance in full in accordance with the issue documentation of Eurobond issues, the report says.

Despite concerns about the impossibility to make currency payments on sovereign Eurobonds against the background of freezing part of Russia’s international reserves, the Ministry of Finance has no problems with payments so far.

Earlier in March, a payment was made on Eurobonds maturing in 2023 and 2043, then the holders received the coupon on Eurobond-2029 (the terms of this issue provide for the possibility of payment in rubles, but the Russian Federation did not use it). This week the National Settlement Depository received funds to pay the coupon on Russia’s sovereign Eurobonds maturing in 2035.

Finance Minister Anton Siluanov emphasized that the Finance Ministry will give all necessary payment orders to transaction agents in order to make the payment in currency. But the payment in foreign currency will be possible only on condition of unfreezing the foreign currency accounts of the Central Bank and the government, he emphasized.

Borrowing market participants wondered whether such a payment would be legally possible given the sanctions imposed by the U.S. authorities on Russian state institutions, including the Ministry of Finance and the Central Bank. In response to this question, a representative of the U.S. Ministry of Finance, on the eve of the first coupon payment on Russian Eurobonds in the new sanctions reality, quoted the OFAC general license dated March 2, which allows transactions necessary to receive payments on Russian securities until May 25.