Russia recommends no Eurobond payouts if Russian holders don’t get money

(Reuters) – Russian authorities recommended a halt in issuing permits for payouts on Eurobonds if Russian bondholders do not receive payments, the finance ministry said on Tuesday.

“Now, due to ongoing violations of the rights of Russian holders of Eurobonds by the international settlement and clearing system, payments on Eurobonds are received only by those bondholders whose rights are recorded in a foreign accounting system,” the ministry said in a statement.

“The money does not reach Russian holders of Eurobonds.”

In order to protect Russian investors’ interests, authorities recommended an early redemption of Eurobonds in roubles using the Russian market infrastructure, the ministry said.

(Reporting by Reuters)