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Ukraine Will Begin Selling War Bonds to Fund Armed Forces

Ukraine Will Begin Selling War Bonds to Fund Armed Forces
Source: The New York Times

Ukraine’s government has announced that it would begin selling bonds on Tuesday to fund its military forces’ defense against a Russian invasion.

Following a drop in the price of Ukraine’s existing bonds, the announcement was made.

Ukraine’s finance ministry also tried to convince overseas investors that the country would not default on its loans.

Investors fear that Russia’s invasion of Ukraine will force Kyiv to default on its debt.

“In times of Russian Federation military aggression, the Ministry of Finance encourages individuals, enterprises, and international investors to assist the budget of Ukraine by investing in military government bonds,” the Ukrainian Ministry of Finance stated in a Twitter thread.

Each one-year bond will have a nominal value of 1,000 Ukrainian hryvnia (£24.80; $33.27), according to the ministry, and the interest rate provided to investors will “be established at the auction.”

“The bond revenues will be utilized to address the demands of Ukraine’s Armed Forces,” it said.

The news came as the Russian rouble plummeted by about 30% against the US dollar, and the country’s international debts were battered.

As a result of Moscow’s invasion of Ukraine, Western countries slapped unprecedented sanctions on it.

In response to the sanctions, Russian President Vladimir Putin issued an order prohibiting citizens from moving money outside of Russia, including for debt payments.

Meanwhile, Moscow’s stock market will be closed for a second day on Tuesday, following severe losses last week.