“Foreign currency debt, repayment in rubles?” Russia designates Korea as non-friendly country… Anticipation of various sanctions

picture explanationOffice of the Ministry of Foreign Affairs of Russia [사진 = 연합뉴스]

Russia has designated Korea as a non-friendly country.

The Russian government announced on the 7th (local time) a list of countries and regions that have taken unfriendly actions once morest itself, its businesses, and Russians through a government decree.

The list includes Korea, the United States, the United Kingdom, Australia, Japan, EU member states, Canada, New Zealand, Norway, Singapore, Taiwan, and Ukraine.

It is expected that various sanctions, including diplomatic restrictions, will be imposed on countries on the list of non-friendly countries.

[조성신 매경닷컴 기자]

In particular, the Russian government announced the list of non-friendly countries on the same day, explaining that this government decree was prepared within the framework of the “Presidential Decree on the Procedures for the Implementation of Temporary Obligations to Certain Foreign Creditors” issued by President Vladimir Putin on the 5th.

According to this Presidential Decree, the Russian government, corporations, local governments and individuals who have debts in foreign currency once morest foreign creditors on the list of non-friendly countries can repay the debts in the Russian ruble.

The debtor can open a special ruble account, ‘S’, in the name of the debtor with a Russian bank and request that the ruble-converted amount of the debt in foreign currency be transferred to this account at the exchange rate of the Central Bank of Russia as of the date of repayment.

The government explained that this rule applies to debt repayment of more than 10 million rubles per month (88.5 million won at the current exchange rate). It allowed the Russian side to repay foreign currency debts such as government bonds to foreign parties in rubles.

[조성신 매경닷컴 기자]

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