Russia attempts to dodge default by servicing external debt in rubles

25 May, 08:14 PM
Chairman of the Russian State Duma Vyacheslav Volodin (Photo:ΝΕΑ ΔΗΜΟΚΡΑΤΙΑ / Flickr)

Chairman of the Russian State Duma Vyacheslav Volodin (Photo:ΝΕΑ ΔΗΜΟΚΡΑΤΙΑ / Flickr)

Following the refusal of the U.S. Treasury Department to renew Russia’s license to service its foreign debt through U.S. banks, Russia will settle accounts in rubles, said Chairman of the Russian State Duma Vyacheslav Volodin, Russia’s Interfax news agency has reported.

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“We will pay in rubles. This is a conscious choice on the part of the U.S. They themselves banned payments in dollars. Today, the ruble has significantly strengthened, and in this sense, a favorable market situation has unfolded for us,” Volodin said.

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Thus, according to Volodin, "by artificially banning payments in dollars, Washington is trying to create problems for Russia."

“Our country has a solution to this challenge,” he said, noting that “all the required funds for payments are at hand.”

“The United States and the satellites that support their decisions can start getting used to the ruble,” Volodin stated.

Earlier it the OFAC license (Office of Foreign Assets Control, a division of the U.S. Department of the Treasury), which allowed transactions necessary to receive payments on debt obligations of the Ministry of Finance of the Russian Federation and the Bank of Russia for a period up to May 25, said Russia’s license will not be renewed.

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