Russia is threatened with historical bankruptcy. However, Russian Finance Minister Anton Siluanov emphasized that Russia has the financial resources and does not intend to bankrupt. The problem is that Moscow has to pay its obligations in a certain currency – In dollars or euros. If you fail to do so, Russia will face technical bankruptcy.

Therefore, Russian financiers are looking for a way to avoid the black scenario. As reported by Bloomberg, the latest idea is a new payment mechanism. In its idea, it contradicts the idea that regulates Europe’s payment for gas in rubles.

– This is how you work with gas payments: we get foreign currency and then convert it into rubles on behalf of the gas buyer – said Anton Siluanov in an interview with Vedomosti. – The international bond settlement mechanism will work in the same way, but in the opposite direction – added.

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Russia wants to use banks to convert its ruble payments into dollars or euros, thereby repaying its obligations. To receive payments, holders of Eurobonds will have to open accounts in foreign currency and rubles with a Russian bank.

However, it is unclear how the banks involved in the transfer of dollar payments will respond to this proposal. The question remains whether stricter restrictions in the US will not limit euro payments as well – notes Bloomberg.

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As he points out, the mechanism is still being discussed by the government in Moscow, after which it will be presented to investors.

There is less and less time, because on May 25 the American consent to accept payments from Russia expired. The US license is one thing, but two days later – on May 27, Russia had to repay its obligations on dollar bonds due in 2026 and in euros due in 2036.

According to Bloomberg, In the case of the first debt securities, Russia has the option to repay obligations only in dollars, euros, Swiss francs or sterling. To accounts in Switzerland, Great Britain or the European Union. And for euro-denominated bonds maturing in 2036, Russia can repay in its national currency.

The clock is ticking. The 30-day grace period began, after which Russia could technically become bankrupt. This would be the country’s first declaration of bankruptcy in foreign debt since 1917.