Eight private investors and five companies affiliated with Russia issued notices of default to Belarusian Finance Minister Yuri Seliverstov concerning five Eurobond issues: Belarus 2023, Belarus 2026, Belarus 2027, Belarus 2030, and Belarus 2031. The disclosure appeared in a report cited by RBC and corroborated by the document itself.
The report notes that direct payments to Russian investors for these Eurobonds were halted in 2022 and were only reinstated at the end of the previous year for holders who bought the securities before September 6, 2022. This selective restoration effectively created a tiered payment system, drawing scrutiny from several bondholders who purchased after the cut-off date.
According to the declaration, Belarus’ purported default on these Eurobonds stems from what shareholders view as the failure of the Belarusian Council of Ministers and the central bank to meet repayment obligations or to distribute coupon payments due on the securities. Shareholders argue that such inaction constitutes a breach of the contract terms embedded in the Eurobond agreements.
The document further contends that the new payment framework proposed by Minsk is discriminatory, placing owners who acquired the bonds after September 6, 2022 at a material disadvantage and compromising their financial interests.
A representative for the investor group told the publication that LCIA proceedings would be an appropriate venue to seek recovery of the withheld Eurobond payments from Belarus. The group emphasized that arbitration could offer a neutral, legally binding path to resolve disputes over overdue interest and principal repayment.
In the interim, private investors, on behalf of the Russian state, have signaled potential measures to curb the volume of sovereign loans extended to Belarus and to suspend new lending until bond obligations are fully honored. These considerations reflect broader geopolitical and financial pressures influencing Minsk’s debt strategy and the risk profile of Belarusian sovereign securities.
Earlier remarks from President Lukashenko have underscored a prioritization of domestic economic management, which has included directives aimed at reshaping the ministry of economy and financial governance. Observers note that such shifts may impact Belarus’ ability to navigate international debt commitments and respond to investor concerns in a timely manner.
As this situation unfolds, market participants across North America are watching closely how Belarus addresses outstanding bond payments and how counterparties assess risk in the region. The actions of the Russian investor group, the stance of Belarusian authorities, and the response from international arbitration forums will shape the perceived reliability of Belarusian euro-denominated debt in the months ahead, with potential implications for credit ratings, investor diversification, and regional financial stability.