Russian President Vladimir Putin has signed a decree that establishes a new temporary procedure for payments on foreign currency debt (Eurobonds). Under Putin’s decree, Russia will be able to pay foreign currency debt in rubles, RBC reported.

“In order for the Russian Federation to fulfill its government debt obligations expressed in government securities, the nominal value of which is specified in foreign currency, the Russian Federation has the right to send to a non-banking credit organization that is a central depository an application to open in the name of a foreign depository (without the personal presence of its representative) account type “I”, which is maintained in rubles,” the text of the decree reads.

The holders of Eurobonds will be the beneficiaries of this account. Indexation of ruble payments will be made in accordance with the ruble exchange rate on the domestic foreign exchange market of Russia.

According to Putin’s decree, ruble payments on foreign currency debt will be considered “duly executed,” regardless of the position of those to whom the payments are intended.

“Obligations on Eurobonds of the Russian Federation shall be recognized as duly performed if they are performed in rubles, in the amount equivalent to the value of obligations in foreign currency and calculated at the foreign currency exchange rate formed on the domestic foreign exchange market of the Russian Federation on the day when the Russian Federation made a payment to the central depositary,” the document says.