In total, Russia has 15 outstanding international bonds with a face value of around $40 billion.
(Photo: AP)
Moscow Russia is getting closer to bankruptcy: for the first time on Wednesday, payments for two foreign currency bonds were not made in dollars but in rubles. Because of the Western blockade of its foreign exchange reserves as a result of the war against Ukraine, Moscow intends to continue to do so in the future. “Russia has all the necessary resources to service its debt,” said Kremlin spokesman Dmitry Peskov. “If this blockade continues and payments to service the debt are blocked, they could be in rubles.”
Earlier, the Treasury decided to make the payments of $649.2 million that are actually due to the creditors of the government bonds that run until 2022 and 2042 in the national currency rubles.
According to experts, Russia now has 30 days to transfer this money in dollars. Otherwise, the process will become “the formal default of Russia on foreign debts”, as the Russia expert Gerhard Mangott from the University of Innsbruck tweeted.
Russia has now for the first time paid debt service to foreign creditors – it’s about USD 649 million – in rubles. After a period of 30 days, it becomes a formal default by Russia on foreign debts.
— Gerhard Mangott (@gerhard_mangott) April 6, 2022
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