The Russian Ministry of Finance signaled its intention to keep placing federal loan bonds, known as OFZ, on the debt market through the third quarter of 2022. This update was reported by Vedomosti, which cited a source close to the government.
The source indicated that the government may resume issuing government bonds after it completes the budget projections, a process expected to be finalized by the end of September. A separate insider from the publication confirmed the plan, noting that OFZ docking would take place no later than October.
“First there should be answers to investors’ questions, then there should be placements,” the source explained.
Both insiders emphasized that no specific borrowing amounts had been decided yet. The primary objective, they said, is to test the market. One source framed the initiative as a gradual return to market operations and a move toward normal borrowing volumes beginning in 2023.
Former Russian Finance Minister Anton Siluanov has warned that by 2025 the cost of servicing the state debt could surpass 2 trillion rubles, even if loans are kept at moderate levels.
Earlier, the Russian Audit Chamber reported that the foreign public debt had declined by $2.6 billion from the start of the year, standing at $57,143.2 million as of April 1. In ruble terms, this figure represents about 41.2% of the total debt, while the equivalent in dollars showed a 24.6 million decline (6.6%) compared with the same period in 2021.