Russia's Central Bank (CBR) extended the mechanism enabling receipt of coupon income on Belarusian Eurobonds and bond redemption presentations, the regulator stated on December 30.

Russia and Belarus maintain close economic and financial integration as part of the Union State framework. The Central Bank's extension ensures the continued functioning of the secondary market infrastructure for Belarusian debt securities held by Russian investors.

"In 2026, holders of Eurobonds of the Republic of Belarus will be able to receive coupon income and present bonds for redemption," it said.

"The Bank of Russia has extended the operation of such a mechanism. In addition, Eurobonds can be replaced with government securities of the Republic of Belarus," the Central Bank stated, according to TASS.

The possibility of receiving payments through Russian infrastructure on Eurobonds of Bank of Development of the Republic of Belarus also remains in place.

Investors can present them for buyback if necessary.

"Thanks to these measures, payments on bonds and replacement of Eurobonds will occur bypassing foreign accounting institutions," the Central Bank stated.

The mechanism provides Russian investors holding Belarusian sovereign and quasi-sovereign debt instruments with access to coupon payments and redemption proceeds despite Western sanctions restricting access to international settlement systems.

In 2024, the CBR and Minsk set up the detailed procedure where Russian holders prove “friendly” status, send documents through Russian depositories, can be paid in Belarusian rubles, and can swap Eurobonds into Belarus domestic government bonds.

Since late 2023, Belarus and Russia have already been routing Belarus Eurobond payments to Russian investors via Russia’s National Settlement Depository, explicitly to bypass Western clearing systems.

The December 30 announcement essentially extends that existing workaround into 2026.