The Russian demands $300,000 from the Ministry of Finance of Belarus for Eurobonds

A lawsuit has been filed against the Ministry of Finance of Belarus by a Russian investor.

The department is required to pay $300,000 to the investor for Eurobonds.

The Ministry of Finance of Belarus proposed relocating the case either to Belarus or to London from Moscow.

Approximately $500 million worth of Belarusian Eurobonds are held by the Russians.

The Moscow City Court has started to look into the first lawsuit concerning Eurobonds of the Republic of Belarus (RB). According to Vedomosti, one of the Russian investors is demanding that the Ministry of Finance of the Republic of Belarus pay back around 300 thousand dollars of the nominal value of bonds with coupons.

At the meeting, representatives from the Belarusian department expressed their opposition to the dispute over Belarus' Eurobonds being heard in a Russian court, and proposed that the case be taken to court in either London or Minsk.

After the August 28 meeting, a recess was declared to review the materials presented by the two sides. The next hearing of the case is set for September 6, 2023.

Since spring 2022, payments on Eurobonds of the Republic of Belarus have ceased to reach Russian bondholders due to sanctions, halting the transfers that were previously made through Western banks.

Belarusbank, a state-owned bank, was chosen by the authorities of Belarus to receive funds in Belarusian rubles at the official rate.

In February 2023, the Ministry of Finance of the Republic of Belarus reported that $800 million worth of Eurobonds had been redeemed, however, the funds never made it to the Russian holders.

Approximately $500 million worth of Belarusian Eurobonds are owned by hundreds of investors from Russia, who have expressed their dissatisfaction with the broken scheme, according to experts.

In July, the international agency Moody's declared a default on the state debt of Belarus after the Ministry of Finance of the Republic of Belarus made coupon payments of $22.9 million on Eurobonds in Belarusian rubles in June.