Russia is on the verge of a technical default. Moscow: “artificial, made by the United States and the European Union”

Russia is on the verge of a technical default.  Moscow: “artificial, made by the United States and the European Union”

Rome, June 26, 2022 – Russia is back in the abyss hypothetical: Having avoided it for months thanks to his quirks and ploys, Putin will now have to deal with the financial storm the West has stirred up to stop his insane invasion of Ukraine. This will be the first national default since 1918, when Moscow did not repay the debts of the tsars after the Bolshevik Revolution (in 1998, with the ruble crisis, the Russian Federation declared itself instead of repaying its internal debts).

There is at stake $100 million interest on bonds, One in dollars and one in euros due in 2026 and 2036. On May 27, Moscow had to pay bonds, but a period was granted 30 dayswhich ends at midnight today.

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Broad sanctions make it impossible for Russia keep payments on me $40 billion in bonds In circulation: Moscow It is unable to send money to bondholders due to obstructions. According to the Kremlin, the default would be for no reason, e artificial Because it was wanted by the West that pushed Russia into this situation.

Technical default will be activated in the morning, when investors do not collect their funds on time. But Moscow does not seem too worried, and Russian Finance Minister Anton Siluanov said in recent days: “Anyone can declare what he wants and can try to attach any designation to Russia. But anyone who understands the situation knows this. This is by no means a fault.”

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The blocking of Moscow payments was triggered by the US Treasury’s Office of Foreign Assets Control (Ofac), which did not renew the license that exempted US investors from sanctions making it impossible for Russians to repay debts in dollars or in prospectus currencies.

When asked about the Russian default, Ovas explained: “Although it is official, It will be very symbolicGiven that Russia does not have access to international loans at the moment and does not need them thanks to its rich oil and gas revenues, the “branding” is likely to increase borrowing costs in the future. ”

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