Moscow, Apr. 7, (dpa/GNA) - Russia paid its foreign debt using roubles rather than US dollars for the first time on Wednesday, meeting payment for a eurobond amounting to $649.2 million.

Russia’s Finance Ministry transferred roubles to make the payment, which was supposed to be made in dollars, after an American bank refused to execute the transfer in dollars due to strict sanctions on Moscow after its invasion of Ukraine.

Kremlin spokesperson Dmitry Peskov said on Wednesday that Russia had no reason to declare bankruptcy. “Russia has all the necessary resources to pay its foreign debts,” he insisted, while also complaining that “significant sums” of Russia’s foreign reserves were frozen in bank accounts abroad.

Should this state of affairs continue, Russia would be forced to make payments exclusively in roubles, Peskov said, adding that Russia’s “artificial bankruptcy” could only be brought about if rouble payments were also blocked.

On Wednesday, White House spokesperson Jen Psaki said that Moscow had a choice between slowly draining its precious foreign exchange reserves and declaring state bankruptcy.

Financial experts and rating agencies have been warning about Russian bankruptcy for weeks, with an eye on its limited access to its currency and gold reserves. But, as Peskov said, they noted this would only be a technical bankruptcy, not true insolvency in the classic sense.

Financial markets have priced in their belief that Russia will miss a key payment in the near future. However, such a default is not expected to cause serious waves on the international markets.

But there was one glimmer of hope for Moscow, as Hungary said it is prepared to pay its Russian gas bills in roubles, highlighting the difficulties the West will have in levying economic penalties on Russia for its invasion of Ukraine.

“We don’t have any problem with it,” said Hungarian President Viktor Orban says. “If the Russians want roubles, then we’ll pay in roubles.”

The next gas payment is due in May. Orban said security of supply is his main priority.

GNA

Moscow, Apr. 7, (dpa/GNA) - Russia paid its foreign debt using roubles rather than US dollars for the first time on Wednesday, meeting payment for a eurobond amounting to $649.2 million.

Russia’s Finance Ministry transferred roubles to make the payment, which was supposed to be made in dollars, after an American bank refused to execute the transfer in dollars due to strict sanctions on Moscow after its invasion of Ukraine.

Kremlin spokesperson Dmitry Peskov said on Wednesday that Russia had no reason to declare bankruptcy. “Russia has all the necessary resources to pay its foreign debts,” he insisted, while also complaining that “significant sums” of Russia’s foreign reserves were frozen in bank accounts abroad.

Should this state of affairs continue, Russia would be forced to make payments exclusively in roubles, Peskov said, adding that Russia’s “artificial bankruptcy” could only be brought about if rouble payments were also blocked.

On Wednesday, White House spokesperson Jen Psaki said that Moscow had a choice between slowly draining its precious foreign exchange reserves and declaring state bankruptcy.

Financial experts and rating agencies have been warning about Russian bankruptcy for weeks, with an eye on its limited access to its currency and gold reserves. But, as Peskov said, they noted this would only be a technical bankruptcy, not true insolvency in the classic sense.

Financial markets have priced in their belief that Russia will miss a key payment in the near future. However, such a default is not expected to cause serious waves on the international markets.

But there was one glimmer of hope for Moscow, as Hungary said it is prepared to pay its Russian gas bills in roubles, highlighting the difficulties the West will have in levying economic penalties on Russia for its invasion of Ukraine.

“We don’t have any problem with it,” said Hungarian President Viktor Orban says. “If the Russians want roubles, then we’ll pay in roubles.”

The next gas payment is due in May. Orban said security of supply is his main priority.

GNA