LONDON—President Vladimir Putin signed a decree on Wednesday to establish temporary procedures aimed at fulfilling Russia’s foreign debt obligations as the country teeters on the brink of default.
The Kremlin has repeatedly said there are no grounds for Russia to default on its debts. It says the government has the funds to pay but was unable to make interest payments to bondholders because of sanctions, accusing the West of trying to drive Russia into an artificial default.
Under the order, Putin has given the government 10 days to choose banks to handle payments on Eurobonds under a new scheme, suggesting that Russia will consider its debt obligations fulfilled when it pays bondholders in rubles….