Russia has made its largest one-day debt issue in history, raising the equivalent of €13.6 billion, the UK’s Ministry of Defense (MoD) said.
Debt issuance is an approach used by both governments and companies to raise funds by selling bonds to outside investors.
In return, investors earn periodic interest on the invested amount.
In the latest intelligence update on the war in Ukraine, the Ministry of Defense explained that this is important for Russia as debt issuance is a “key mechanism to support defense spending”.
This has increased significantly since the invasion of Ukraine, he said, adding that Moscow will spend 40 percent more in its declared “national defense” budget next year.
“Issuing debt is expensive during periods of uncertainty”, declared the Ministry of Foreign Affairs.
“The size of this auction most likely indicates that the Russian Ministry of Finance perceives current conditions as relatively favorable, but is anticipating an increasingly uncertain fiscal environment over the coming year,” the British ministry announced.