Putin plans to pay foreign currency debts to the United States and the EU in roubles

SUNDAY, 6 MARCH 2022, 12:19 AM 

Russian President Vladimir Putin has signed a decree allowing Russian entities to pay all their debts to the United States, EU countries and other countries that have imposed sanctions on Russia in roubles. 

The decree can be found on the Russian legal information portal.

The decree states that debts to "hostile" countries, such as those that imposed sanctions against Russia for its invasion of Ukraine, are considered repaid if they were paid in roubles converted at the Central Bank of Russia exchange rate.

It should be noted that the UK and the United States have previously imposed sanctions on the Central Bank of Russia and the Russian Ministry of Finance, which effectively blocks the aggressor's foreign exchange reserves and prevents foreign exchange interventions in order to support the rouble.

This decree will also apply to all legal entities and individuals registered in "hostile" countries.

By the same decree, Putin allowed Russian entities to pay all foreign currency debts to residents and non-residents in roubles if they were entitled to such payments by the countries that imposed sanctions after 1 March.

Read more in the article: Russian central bank's assets blocked. What does it mean? 

Background: The sanctions against the Russian Central Bank's operations with reserves were imposed by the European Union, as well as the United States, Japan, the United Kingdom and even the traditionally neutral Switzerland. 

The rouble exchange rate is constantly setting historic lows, reaching 110 roubles per dollar and 122 roubles per euro.