Russia says it has fully paid $102m coupon on 2035 Eurobond

The Russian finance ministry said on Tuesday it has fully paid a coupon on Russia's Eurobond due in 2035, its third payout since unprecedented Western sanctions called Moscow's ability to service foreign currency debt into question.

The ministry said it had channelled $102 million for the coupon payout on the Eurobond to Russia's National Settlement Depository (NSD).

"The Russian finance ministry has fully executed its obligations to service sovereign securities of the Russian Federation in accordance with the Eurobond prospectus," the ministry said.

It did not say whether the payment had been sent to Euroclear or processed further to foreign Eurobond holders.

According to the Eurobond prospectus, settlement with investors occurs through the NSD and Euroclear, and "if, for reasons beyond its control, the Russian Federation is unable to make payments... in US dollars", settlement may be in euros, Pound sterling, Swiss francs or Russian roubles.

Neither Euroclear nor NSD immediately responded to a request for comment.

Earlier in March, Russia paid $117 million and $66 million in coupons on two sovereign Eurobonds, out of a total $3.4 billion in coupon payments and external debt redemptions due this year, and as some corporate borrowers faced payment delays. 

Russia's next payment is on March 31 when a $447 million payment falls due. Its biggest payment of the year - and its first full repayment of principal, of $2 billion - is due on 4 April.