The Sub–Commission of the Government Commission for the Control of Foreign Investments (hereinafter referred to as the Sub-Commission) has determined the conditions for payments on Eurobonds of Russian companies instead of their mandatory substitution.
Earlier, on May 22, 2023, a Decree of the President of the Russian Federation № 364 was adopted, which prescribed the mandatory substitution of Eurobonds with local bonds by January 1, 2024.
On July 27, 2023, the extract from the decision of the Sub–Commission of July 24, 2023 № 176/3 was published on the website of the Ministry of Finance, according to which it is still possible to pay the Eurobonds without their substitution, subject to obtaining the permission of the Sub–Commission.
When deciding by the Sub-Commission whether it is viable to allow such a permission, the sub-commission will respect the following conditions:
For bonds whose repayment is due by December 31, 2024, the payment permission can be granted without taking into account the above conditions (points 3-5).
Earlier, on May 22, 2023, a Decree of the President of the Russian Federation № 364 was adopted, which prescribed the mandatory substitution of Eurobonds with local bonds by January 1, 2024.
On July 27, 2023, the extract from the decision of the Sub–Commission of July 24, 2023 № 176/3 was published on the website of the Ministry of Finance, according to which it is still possible to pay the Eurobonds without their substitution, subject to obtaining the permission of the Sub–Commission.
When deciding by the Sub-Commission whether it is viable to allow such a permission, the sub-commission will respect the following conditions:
- There are no overdue debts for Eurobonds.
- The obligations to the resident holder, whose rights are considered in a foreign depository, are fulfilled. In addition, the Decree of the President of the Russian Federation № 529 of August 8, 2022 gives Russian legal entities the right to fulfill the obligations for Eurobonds to the resident or the "friendly" non-resident in rubles to their bank accounts in the Russian banks, provided that the information confirming the existence of obligations and their size is sufficient.
- The issuer has received an approval from the holder of Eurobonds for separate payments of bonds that are considered in Russian and foreign depositories.
- The euro bonds are admitted to trading on the Moscow Stock Exchange (MOEX).
- The issuer has received the "confirmation of the will" from holders of Eurobonds who have the right to dispose of more than 75% of the votes of the total number of Eurobonds considered in Russian depositary for the receipt of cash payments, and not for substitution by the local bonds.
For bonds whose repayment is due by December 31, 2024, the payment permission can be granted without taking into account the above conditions (points 3-5).