Russia’s Finance Ministry pays 7bn rouble coupon on 2042 Eurobonds
Version 2: A third outlet, Kommersant, has added detail on Russia’s rouble settlement mechanism for sovereign Eurobonds and on the limits to foreign holders’ access after sanctions on the depository; the payment itself is unchanged, though Kommersant’s stated dollar equivalent of $84.4 billion differs from Vedomosti’s $84.4 million.
In short
The Russian Finance Ministry said it paid 7 billion roubles in coupon income on Eurobonds maturing in 2042, with the funds received by the payment agent, NCO JSC National Settlement Depository, Vedomosti reported. Vedomosti put the dollar equivalent at $84.4 million, while Kommersant’s report stated an equivalent of $84.4 billion. Kommersant said that since June 2022 the ministry has made all sovereign Eurobond payments in roubles, a measure it attributed to foreign counterparties refusing to carry out state debt payments.
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The Finance Ministry said it paid 7 billion roubles in coupon income on Eurobonds maturing in 2042, TASS, Vedomosti and Kommersant reported. Vedomosti said the ministry fully met its obligations on the issue and that the payment agent, NCO JSC National Settlement Depository, received the funds. Vedomosti put the dollar equivalent at $84.4 million, while Kommersant’s report stated an equivalent of $84.4 billion. Kommersant said the ministry’s announcement listed the codes of both the original issue and the issue placed during the substitution of sovereign Eurobonds. [ 1 , 2 , 3 ]
Kommersant reported that since June 2022 the ministry has made all payments on Russia’s sovereign Eurobonds in roubles, a measure the ministry said the authorities took after foreign counterparties refused to carry out payments servicing the Russian state debt. Under the temporary procedure, a rouble payment counts towards the obligation if its sum is equivalent to the foreign currency obligation at the rate formed on Russia’s domestic market on the day the funds are transferred to the central depository, according to Kommersant. Once the money reaches the National Settlement Depository, it is passed to holders whose rights are recorded by the settlement institution or its depositories, with foreign holders credited to special rouble accounts of type “I”, the outlet reported. It added that after sanctions were imposed on the depository, foreign depositories could not open accounts with it, which limited foreign investors’ access to the scheme. [ 3 ]
Vedomosti reported that on 16 September the ministry said it had met coupon obligations on Eurobonds maturing in 2043, totalling 3.7 billion roubles ($44.1 million). The outlet also reported that the ministry estimates the maximum volume of state debt placement in 2026 at no more than 6.47 trillion roubles by nominal value, and that RBC Investments calculated the ministry raised 4 trillion roubles in the first nine months of 2026. Federal budget execution in 2027–2029 is expected to run with deficits of 2.2% of GDP in 2027 and 1.9% of GDP in 2028 and 2029, according to Vedomosti. [ 2 ]
Why it matters
The announcement is a routine step in the servicing of Russia’s sovereign Eurobond obligations, a calendar that foreign holders watch closely. Kommersant’s account indicates that payments now run through a rouble mechanism at the National Settlement Depository, which it says has limited foreign investors’ access since sanctions were imposed on the depository. The accompanying Vedomosti figures on this year’s borrowing ceiling and planned budget deficits place the payment in the context of the government’s funding plans.
Key facts
- The Finance Ministry said it paid 7 billion roubles in coupon income on Eurobonds maturing in 2042. [ 1 , 2 , 3 ]
- The payment agent for the Eurobonds, NCO JSC National Settlement Depository, received the funds, according to Vedomosti and Kommersant. [ 2 , 3 ]
- Vedomosti put the dollar equivalent of the payment at $84.4 million; Kommersant’s article stated an equivalent of $84.4 billion. [ 2 , 3 ]
- On 16 September the ministry said it had met coupon obligations on Eurobonds maturing in 2043, totalling 3.7 billion roubles ($44.1 million), Vedomosti reported. [ 2 ]
- Kommersant reported that since June 2022 the ministry has made all payments on Russia’s sovereign Eurobonds in roubles, a measure the ministry attributed to foreign counterparties’ refusal to carry out state debt payments. [ 3 ]
- Kommersant reported that after sanctions were imposed on the National Settlement Depository, foreign depositories could not open accounts with it, limiting foreign investors’ access to the rouble payment scheme. [ 3 ]
- The ministry estimates the maximum volume of state debt placement in 2026 at no more than 6.47 trillion roubles by nominal value, and RBC Investments calculated it raised 4 trillion roubles in the first nine months of 2026, Vedomosti reported. [ 2 ]
- Federal budget execution in 2027–2029 is expected with deficits of 2.2% of GDP in 2027 and 1.9% in 2028 and 2029, according to Vedomosti. [ 2 ]
Confirmed by several sources
Still unclear
- Whether the coupon reached bondholders, including foreign investors. Kommersant reports that after sanctions against the National Settlement Depository foreign depositories could not open accounts there, limiting access to the scheme, but the documents do not say whether holders received this particular payment, and the point is covered by a single outlet.
- The dollar equivalent of the 7 billion rouble payment. Vedomosti reports $84.4 million, while Kommersant’s article states $84.4 billion; the outlets disagree on the figure.
- Further Eurobond coupon payments and their schedule for the rest of 2026. The documents mention only the 2042 and 2043 issues and do not set out a payment calendar.
What local media are saying
Timeline, local time
- TASS reports the Finance Ministry paid 7 billion roubles in coupon income on its Eurobonds. [ 1 ]
- Vedomosti reports the ministry fully met obligations on the 2042 Eurobond coupon, with $84.4 million received by the National Settlement Depository. [ 2 ]
- Kommersant reports the 7 billion rouble payment on the 2042 issue and describes the rouble settlement mechanism and its limits for foreign holders. [ 3 ]