Govt may use rubles to fulfill guarantees in foreign currencies

MOSCOW, Aug 9 (PRIME) -- President Vladimir Putin on Wednesday signed a decree to establish a temporary order for fulfillment of state guarantees in foreign currencies using rubles.

Russia will be able to fulfill its guarantees issued in a foreign currency to the beneficiaries that are Russian or foreign legal entities, individuals, or international financial institutions in rubles. The money will be transferred to an account of a claimant or of a third party opened with a Russian bank. Only a Russian company will be able to act as a third party.

If a beneficiary of the guarantee does not want to receive payments in rubles, the government will still be able to pay the guarantee in rubles, while the money will be transferred to a banking account opened on behalf of the beneficiary by the Finance Ministry in a bank that acts as an agent of the government. State development corporation VEB.RF currently acts as the agent.

The decree comes into force immediately after the publishing date, and it is retroactive.

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