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Putin’s Ruble Workaround Still Leaves Bond Payments in Doubt

  • Debtors can set up accounts in Russia to pay foreign investors
  • Rosneft, Gazprom, government have dollar payments due soon
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Russia's Economy Rattled by Sanctions
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Russia and Russian companies will be allowed to pay foreign creditors in rubles on securities including those denominated in other currencies, according to a decree signed by President Vladimir Putin on Saturday, as a way to service debt while capital controls remain in place.

The decree establishes temporary rules for sovereign and corporate debtors to make payments to creditors from “countries that engage in hostile activities” against Russia, its companies and citizens. The government specified on Saturday that it will prepare a list of such countries within two days.