(Reuters) – Russia announced Tuesday that it would launch a buyback program for its sovereign Eurobonds worth $2 billion, due to mature on April 4. This is Russia’s largest debt payment of this year. It will pay all bondholders who accept the offer in roubles.

This move comes after ever-tightening Western sanctions against Russia for its invasion of Ukraine. Moscow called these Western sanctions “economic warfare” and demanded foreign companies pay roubles for Russian gas.

According to a finance ministry statement, bondholders are advised to submit requests to the National Settlement Depository for their holdings by 1300 GMT (March 29) to 1400 GMT (March 30).

According to the statement, Eurobonds will be sold at a price equal to their nominal value.

JPMorgan (NYSE 🙂 states that the bond comes with a grace period of 30 days and does not include provisions for payments in alternate currencies.

In Tuesday’s statement, the finance ministry didn’t say how much of $2 billion worth of Eurobonds it was planning to purchase back. It also did not mention what actions would be taken if bondholders refused to take the offer.

The finance ministry would recognize obligations due to the bonds it has redeemed as being fulfilled in advance of schedule, the ministry added. It also stated that it reserves the right not to modify the purchase date.

On Tuesday, the finance ministry stated that it had paid $102 million for a coupon on Russia’s Eurobond due 2035. This was its third payment since Western sanctions put into doubt Moscow’s ability service foreign currency debt.

Russia’s March 31 payment will be due. It is due for a payment in the amount of $447million. It should also pay $84 millions in coupon for a 2042 sovereign-dollar bond.