russia ukraine
A convoy of Russian armored vehicles moves along a highway in Crimea, Tuesday, Jan. 18, 2022.Associated Press
  • Ukraine raised about $270 million worth of war bonds to fund its defense against Russia.
  • The Eastern European country turned to more traditional finance after raising millions in crypto.
  • The sale came as a Russian convoy stretching 40 miles long closed in on Kyiv, the capital of Ukraine. 

Ukraine has turned to more traditional finance by issuing war bonds to help the Eastern European country fund its defense against Vladimir Putin as more Russian forces close in on Kyiv.

In a LinkedIn post, Ukraine's Ministry of Finance said it placed military bonds worth 8.1 billion hryvnia, which roughly translates to $270 million. The proceeds from the sale, according to a tweet from the ministry, "will be used to meet the needs of the Armed Forces of Ukraine and to ensure the uninterrupted provision of the state's financial needs under the war."

The debt sale — which included one-year bonds with an 11% yield and two-month bonds with a 10% yield — came as a 40-mile-long military convoy was spotted near Kyiv, while Putin's forces shelled the Ukrainian capital and other major cities. 

The new war bonds are one of several moves Ukraine has made to fund its defense against Russia, which launched its full-scale invasion last week. The country has raised $24.1 million in bitcoin and ether, among other cryptocurrencies and digital assets, after its official Twitter account posted digital wallet addresses where people could donate. The country's central bank also set up a special account for people around the world to donate funds to support the military. 

The country's debt chief, Yuriy Butsa, told Bloomberg that Ukraine wants to attract not just local currency, but also dollars and euros. He said Ukraine is in talks with the International Monetary Fund and the World Bank for emergency help and is evaluating other fundraising options, like foreign currency issuance, to help its efforts.

Meanwhile, prices on most of Ukraine's other bonds are trading at their lowest-ever levels and continued to sink Tuesday, according to Bloomberg data. That came despite pledges to investors Monday from the Ministry of Finance that it will keep making bond payments.

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