UPDATE 1-Russia's Putin orders issue of bonds for funds repatriation in 2018

(Adds Putin's quote, details)

MOSCOW, Dec 21 (Reuters) - Russian President Vladimir Putin said on Thursday he had ordered bonds denominated in foreign currency to be issued next year to enable businesses to repatriate funds from abroad.

Reuters reported earlier this month that wealthy Russians facing the prospect of targeted U.S. sanctions next year had floated the idea of a special treasury bond to help create favorable conditions for them to bring their cash home.

Putin told a meeting of top businessmen and government officials that the central bank and the government had been working on the issue.

"I have given an order to define the necessary conditions and parameters to issue such papers for Russian investors and to ensure their circulation as soon as next year," Putin said.

Sources had previously told Reuters that it was crucial, unlike with bank accounts, that future holders of such bonds be able to remain anonymous.

Putin described the bonds as a "national external borrowing bond denominated in foreign currency," phrasing typically used to describe Eurobonds.

A source close to the Russian finance ministry told Reuters that the possible size of such a bond issue could total $1 billion to $3 billion.

The finance ministry currently envisages issuing new Eurobonds worth $3 billion next year. (Reporting by Denis Pinchuk; Additional reporting by Darya Korsunskaya; Writing by Andrey Ostroukh; Editing by Andrew Osborn and Hugh Lawson)