Russia considering issuing foreign debt obligations to support protracted war in Ukraine – British intelligence

13:56, 05.04.2023 1 min read

The Russian Federation is counting on external financial support from foreign countries, which it considers "friendly," according to a defense intelligence report published on Twitter by the Ministry of Defense of the United Kingdom of Great Britain and Northern Ireland on Wednesday morning.

"Russian Prime Minister Mikhail Mishustin said that a move to issuing some of Russia's sovereign debt in foreign currencies was 'under development'… Once the development is completed, investors from other countries will be able to purchase Russia's sovereign debt and therefore finance some of Russia's future budget shortfalls. Such investors would be indirectly financing Russia's invasion of Ukraine," the message reads.

The intelligence service said that in recent months, Russia's own banks have been the main organizations buying Russian government debt, but they are unlikely to be able to fully finance the budget deficit expected in the future.

"Russian officials likely see external debt issuance as one way to plug gaps in Russia's finances as they plan for a long war in Ukraine. However, it remains unclear whether Russia will succeed in implementing the measures," the message reads.