Russia plans to issue external debt obligations to finance a protracted war against Ukraine. If foreign investors buy these securities, then they are involved in the invasion.
It was reported by the British Ministry of Defence on Twitter.
As noted in the Defence Intelligence Update, on March 28, Russian Prime Minister Mikhail Mishustin said that the transition to the issuance of part of Russia's sovereign debt in foreign currency is "under development." This move indicates that Russia is counting on external financial support from foreign states, which it considers "friendly."
Once development is complete, investors from other countries will be able to redeem Russia's sovereign debt and thus finance Russia's budget deficit. "Such investors would be indirectly financing Russia's invasion of Ukraine," the report said.
According to British intelligence, Russia's own banks have been the main entities buying Russian public debt in recent months. However, it is unlikely that they are able to fully fund the expected budget deficit 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 British Ministry of Defence notes.
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