Renovation of a pariah

Five years after Russia defaulted on its sovereign debt, burning foreign investors, the government is poised to return to international capital markets next year with $2.76 billion of Eurobond issues. Thanks to the country’s revival, investors are salivating at the prospect of fresh Russian paper.

The finance ministry submitted the draft 2004 budget at the end of July. It included a provision for Eurobond issues, which look more likely to be issued thanks to a change in the way Russia handles its windfall oil revenues.