Russia is Unable to Pay Its Foreign Debt — S&P
According to the S&P rating agency, Russia has offered bondholders payments in rubles instead of dollars, which indicates that a default on external debt is approaching.
The Russian Federation tried to pay in rubles on several dollar bonds that expired on April 4. S&P specialists said that such a decision is tantamount to a “selective default”, according to CNN.
And, although Russia has a grace period of 30 days to fulfill its obligations, on April 9 S & P downgraded the long-term and short-term rating of the Russian Federation to SD (selective default).
In its press release, the agency said that investors are unlikely to be able to convert ruble payments into their original dollar equivalent, or that the Russian government will convert these payments within a grace period.
Member of the US presidential administration, John Cooper, confirmed CNN’s information.
On April 11, Russian Finance Minister Anton Siluanov, in an interview with Izvestia, announced his readiness to go to court in the event of a default.
Russia is unable to access its foreign exchange reserves of about $300 billion due to Western sanctions imposed after the military invasion of Ukraine. A significant part of the funds remaining with the Russian Federation is presented in the form of low-liquid gold in vaults.
On February 24, Russia carried out a paramilitary invasion of Ukraine on several fronts, shelling Kharkiv, Kyiv, Sumy, Chernihiv, Vinnytsia and other cities of various calibres.
The Ukrainian army is holding back the invasion of the enemy. From the hottest spots, the civilian population is trying to evacuate to other cities or even countries.
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