Russia slips into historic default as sanctions muddy next steps

| Russia defaulted on its external sovereign bonds for the first time in a century, the culmination of ever-tougher Western sanctions that shut down payment routes to overseas creditors.

The default matters little to Russians dealing with double-digit inflation and the worst economic contraction in years.The route to this point has been far from normal, as Russia has the resources to pay its bills – and tried to do so – but was blocked by the sanctions. Those restrictions also mean there is huge uncertainty about what comes next, and about how investors can go about getting their money.

The nation’s eurobonds have traded at distressed levels since the start of March, the central bank’s foreign reserves remain frozen, and the biggest banks are severed from the global financial system.Russia has pushed back against the default designation, saying it has the funds to cover any bills and has been forced into non-payment.

While those bonds were issued after an agreement with the so-called London Club in 1997 to restructure Soviet-era debt held by Western banks, they were technically obligations of Vnesheconombank rather than the Russian Federation, according to a paper published by the International Monetary Fund. By comparison, foreigners held the equivalent of almost $US20 billion of Russia’s euro bonds as of the start of April.

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What's the impact of Russia's $57 billion debt default?Russia has defaulted on its foreign debt for the first time since the 1917 Bolshevik Revolution. 9News I owe u n u forbid me to pay u. Good luck! well .. Putin ... if you have that much money as you say you do .. if you pay your bills through your bank account .. it will only take a week to clear .. go for it !! :) Lol. US engineers fake default.
Source: 9NewsAUS - 🏆 10. / 72 Read more »

Russia defaults on foreign debt for first time since 1998 – reportsKremlin owes about $40bn but has been shut out of international financial system since invasion of Ukraine Serves Russia Right. Anytime they withdraw their troops from Ukraine: Crimea, Chechnya; they start repaying their debt and trading. KgosiMalele So basically they want to pay, they have the money, but US treasury won't let them! Taiwan has great friends in western places. It's fake news - already explained on the ABC
Source: GuardianAus - 🏆 1. / 98 Read more »

Russia defaults on debt for first time since 1998 – reportsKremlin owes about $40bn but has been shut out of international financial system since invasion of Ukraine
Source: GuardianAus - 🏆 1. / 98 Read more »

Russia defaults on foreign debt for first time in 100 yearsThe default is a grim marker in the country’s rapid transformation into an economic, financial and political outcast. LOL...... of course, why wouldn't you!! I guess you can only do so much when you're being stopped from making money. He seems happy with that
Source: FinancialReview - 🏆 2. / 90 Read more »

Default position of ‘authoritarian countries’ like China and Russia ‘is to lie’Also default position of LNP. Mmm unlike ScuMo! JimMolan Jim ... If the default position of Scott Morrison & the LNP is to lie ....what are they then? If the default position of Donald Trump is to lie ....what does that make him?
Source: SkyNewsAust - 🏆 7. / 78 Read more »

G7 pledges Ukraine support for 'as long as it takes' against Russian invasionThe leaders of the world's largest democratic economies announce new sanctions and tariffs levelled against Russia, with more arms and defence systems going to Ukraine. Yuk, another endless proxy war. No wonder Albo won't bother standing up for Julian Assange, he'd probably openly grill Albo for sending weapons over to support this nonsense. Another Iraq & Afghanistan. 'As long as it takes' pledge by the G7. That's what we want to hear👍 Joe Biden vs Putin. It is hardly a fair competition. Putin is anti NWO. Joe Biden is doing everything he can for the NWO.
Source: abcnews - 🏆 5. / 83 Read more »