Russia plans to issue euro denominated bonds for seven years, the Bloomberg news agency quoted an official with the Russian finance ministry as saying. "This is a sign that Moscow is moving away from the dollar amid concerns about US sanctions," Bloomberg said.
The official at the Russian Finance Ministry said on Tuesday evening that the yield on the 7 year euro denominated bonds would be 3%, without touching the value of the bonds.
The Russian move, the first to issue debts in euro in half a decade, comes only days after clashes between Russia and Ukraine off the coast of the Crimea, causing concern in the local markets.
Russian President Putin has repeatedly called on the Kremlin and state-run companies to reduce their dependence on the dollar in the face of US sanctions.
The Senate is considering a bill that would bar Americans from buying new versions of Russian sovereign debt and preventing Moscow from issuing dollar debt, but it is unlikely to vote before the end of the year, according to Bloomberg.
Putin said earlier that his country will move towards reducing the dollar deal in its economy, "for the sake of security, not to undermine this currency."
