MOSCOW - Russia hopes that Germany will issue no more bonds secured by Russia's sovereign debt to this country, Russian Finance Minister Alexey Kudrin told journalists. Earlier mass media released information about Germany's intention to carry out another placement of Russia-linked debt.

According to Kudrin, Russia is currently holding negotiations on settling Russia's debt with Germany by displacing non-market bonds with marketable debt and money payments subject to an agreed discount. He stressed that debt repayment was the most prudent way to use extra revenue from record high oil prices. Russia allocates about $9bn annually for debt servicing.

Russia will hold necessary consultations with Paris club creditors in the next two months, he added. Russia has not sent any proposals to the Paris club. However, Paris club creditors voice their support to the idea of Russia's converting its debt into marketable bonds during preliminary talks, Kudrin emphasized.