Event Publicly Available Information:
Has a "Potential Repudiation/Moratorium" occurred with respect to the Russian Federation including in respect of its bonds due for final redemption on 31 March 2030?
The EMEA DC determined on 17 March 2022 that the answer to the DC Question is No.
The Eligible Market Participant that raised the DC Question noted that:
- The Russian Federation has issued bonds due for final redemption on 31 March 2030 (CUSIP: 78307ACZ4)
- The Russian Federation issued Executive Order No. 79 On Imposing Special Economic Measures in Connection with the Hostile Actions of the United States in League with Other Foreign States and International Organisations of February 28, 2022 (http://kremlin.ru/acts/news/67881 and http://en.kremlin.ru/acts/news/67881). Paragraph 3 prohibits “from March 1, 2022: a) the implementation of foreign exchange transactions related to the provision by residents in favour of non-residents of foreign currency under loan agreements;".
- On March 5, 2022 the Russian Federation issued a Decree on the provisional procedure for the fulfilment of obligations to certain foreign creditors (http://kremlin.ru/acts/news/67912 and http://en.kremlin.ru/acts/news/67912). In particular, paragraph 1 provides for “1. Establish a temporary procedure for the fulfillment by the Russian Federation, constituent entities of the Russian Federation, municipalities, residents (hereinafter also referred to as debtors) of obligations under loans and borrowings, financial instruments to foreign creditors that are foreign persons associated with foreign states that commit in relation to the Russian Federation , Russian legal entities and individuals unfriendly actions (including if such foreign entities have the citizenship of these states, these states are the place of their registration, the place of their primary business activities or the place of their primary profit from their activities), or persons who are under the control of these foreign persons, regardless of their place of registration (except for cases where their place of registration is the Russian Federation) or the place of their primary business activities (hereinafter referred to as foreign creditors).”
The following news articles were also submitted (note the Bloomberg links are accessible using a Bloomberg terminal by subscription):
https://tass.com/economy/1417955
https://blinks.bloomberg.com/news/stories/R8CQFNDWLU6I
https://blinks.bloomberg.com/news/stories/R8DI6TT0G1L2
| Date | Description | Document |
|---|---|---|
| Closed | DC Meeting Statement: The EMEA DC met today, 17 March 2022, to consider whether a Potential Repudiation/Moratorium had occurred in respect of the Russian Federation. The EMEA DC considered the Executive Orders referenced in the DC Question and the related reported public statements of the Russian Ministry of Finance in respect of its foreign currency denominated debt. The EMEA DC concluded that a Potential Repudiation/Moratorium had not occurred on the basis of such Eligible Information. | |
| Ongoing | The EMEA DC met today to commence discussions in relation to the DC Question and agreed to meet again tomorrow. | |
| Request Accepted by DC | ||
| Pending DC Consent |