Russia offers foreign debt payment system similar to gas one

MOSCOW (AP) — Russia says it will use an arrangement similar to that used for payments for its gas supplies to pay its dollar-denominated foreign debts. The Vedomosti business daily on Monday quoted Finance Minister Anton Siluanov as saying that Russia will offer the holders of its Eurobond obligations to accept a payment scheme bypassing Western financial infrastructure. Russia previously has offered the customers receiving its natural gas to establish an account in dollars or euros at Russia’s third-largest bank, Gazprombank, then a second account in rubles. The importer would pay the gas bill in euros or dollars and direct the bank to exchange the money for rubles. Siluanov told Vedomosti that a mechanism similar to that will be set for Eurobond holders.