Concerns surrounding the settlement of both bonds had gone into overdrive over the weekend, when Russian president
issued a decree authorising the payment of bondholders from so-called hostile nations in roubles, as Russian state institutions, companies and individuals close to the Kremlin have been hit by waves of western sanctions in recent weeks.A repayment in a currency other than the one used to originally issue the bonds would be seen as tantamount to a default. The rouble has plunged in value against major currencies in recent weeks.
Creditors from countries that have not imposed sanctions against Russia, such as China, may be able to be repaid in the currency a debt was issued in if the debtor gets special permission to make the payment, according to Mr Putin’s order. The Rosneft payment may have been transferred before the decree.
An estimated figure of more than $130 billion of foreign-currency debt is owed by the Russian government and private sector.
Why is the government facilitating these SPVs, some of which fund Putin's war machine?