Russia faces defaulting on foreign debts within weeks
2 years, 8 months ago

Russia faces defaulting on foreign debts within weeks

The Telegraph  

Russia is poised to default on its foreign debts within weeks as new US sanctions threaten to prevent it from paying bond holders. Russia is due to make coupon payments on several bonds on May 27, but an exemption granted by the US Treasury allowing payments to flow to Western investors will lapse two days before. “Alternatively, extending the exemption could provide additional payments to bondholders as long as the Russian government signals a willingness and ability to continue making payments,” he said. The West has blocked Moscow from accessing around half of the $640bn in foreign exchange reserves held in foreign accounts as part of extensive sanctions aimed at bringing Vladimir Putin’s ‘Fortress Russia’ to its knees.

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History of this topic

‘New ground is being broken’: EU seizes Russian profits for Ukraine
7 months, 2 weeks ago

‘New ground is being broken’: EU seizes Russian profits for Ukraine

Al Jazeera  

Ukraine wants to use $300bn in Russian central bank money held abroad to defeat it; Europe isn’t enthusiastic. Ukraine wants to use the estimated 210 billion euros of Russian central bank money held in European institutions to defeat Russia on the battlefield. “In this sense, new ground is being broken.” The EU decision is to tap the interest twice a …

EXPLAINER: What’s the impact of a Russian debt default?
2 years, 6 months ago

EXPLAINER: What’s the impact of a Russian debt default?

Associated Press  

LONDON — Russia has defaulted on its foreign debt for the first time since the Bolshevik Revolution more than a century ago, further alienating the country from the global financial system following sanctions imposed over its war in Ukraine. In response, the Russian Finance Ministry said it would pay dollar-denominated debts in rubles and offer “the opportunity for subsequent conversion …

Russia defaults on foreign debt for first time in a century as payment deadline expires
2 years, 6 months ago

Russia defaults on foreign debt for first time in a century as payment deadline expires

India Today  

Russia looked set for its first sovereign default in decades as some bondholders said they had not received overdue interest on Monday following the expiry of a key payment deadline a day earlier. Russia's efforts to avoid what would be its first major default on international bonds since the Bolshevik revolution more than a century ago hit a insurmountable roadblock …

Russia slips into default zone as payment deadline expires
2 years, 6 months ago

Russia slips into default zone as payment deadline expires

The Hindu  

Russia looked set for its first sovereign default in decades as some bondholders said they had not received overdue interest on June 27, 2022 following the expiry of a key payment deadline a day earlier. Russia's efforts to avoid what would be its first major default on international bonds since the Bolshevik revolution more than a century ago hit a …

Russia defaults on foreign debt for the first time since 1918
2 years, 6 months ago

Russia defaults on foreign debt for the first time since 1918

Al Jazeera  

Russia has pushed back against the default designation, saying it has the funds to cover any bills. “It’s a very, very rare thing, where a government that otherwise has the means is forced by an external government into default,” said Hassan Malik, senior sovereign analyst at Loomis Sayles & Company LP. “It’s going to be one of the big watershed …

What's happening with Russia's 1st default on foreign debt in a century
2 years, 6 months ago

What's happening with Russia's 1st default on foreign debt in a century

NPR  

What's happening with Russia's 1st default on foreign debt in a century Enlarge this image toggle caption Mikhail Metzel/Sputnik, Kremlin Pool Photo via AP Mikhail Metzel/Sputnik, Kremlin Pool Photo via AP Russia appears to have defaulted on its international debt for the first time in over a century, after Western sanctions made the country's efforts to pay its overseas creditors …

Russia offers foreign debt payment system similar to gas one
2 years, 7 months ago

Russia offers foreign debt payment system similar to gas one

Associated Press  

MOSCOW — Russia said Monday it may use an arrangement similar to that used for payments for its gas supplies to pay its dollar-denominated foreign debts. The Vedomosti business daily quoted Finance Minister Anton Siluanov as saying that Russia will offer the holders of its Eurobond obligations to accept a payment system bypassing Western financial infrastructure. Asked about Siluanov’s comments, …

Russia says it will pay foreign debt in rubles after US ban
2 years, 7 months ago

Russia says it will pay foreign debt in rubles after US ban

Associated Press  

Russia says it will pay dollar-denominated foreign debt in rubles, a move that is likely to be seen by foreign investors as a default. The U.S. Treasury Department led by Janet Yellen allowed a license to expire Wednesday that permitted Russia to keep paying its debtholders through American banks. The Russian Finance Ministry said it will pay in rubles and …

US to end Russia’s ability to pay international investors
2 years, 7 months ago

US to end Russia’s ability to pay international investors

Associated Press  

WASHINGTON — The U.S. will close the last avenue for Russia to pay its billions in debt back to international investors on Wednesday, making a Russian default on its debts for the first time since the Bolshevik Revolution all but inevitable. Without the license to use U.S. banks to pay its debts, Russia would have no ability to repay its …

Russia inches closer to debt default as US lets key waiver expire
2 years, 7 months ago

Russia inches closer to debt default as US lets key waiver expire

Al Jazeera  

US banks and individuals will be barred from accepting bond payments from Russia’s government after 12:01am NY time on Wednesday. Russia will get pushed closer to a potential default after the US Treasury Department said it will let a key sanctions waiver benefitting American investors expire. US banks and individuals will be barred from accepting bond payments from Russia’s government …

Joe Biden poised to force Russia into debt default
2 years, 7 months ago

Joe Biden poised to force Russia into debt default

The Telegraph  

Joe Biden is poised to force Russia into its first international default for a century by making it impossible for the Kremlin to pay bond investors in dollars. The move will leave the Kremlin unable to avoid a default on its $20bn of international debt for the first time since the Bolshevik revolution, potentially making Russia a pariah on international …

EXPLAINER: What’s the latest in Russia’s dance with default?
2 years, 8 months ago

EXPLAINER: What’s the latest in Russia’s dance with default?

Associated Press  

Russia appeared to dodge default on its foreign debt by dipping into its scarce dollar reserves. The government had claimed that U.S. sanctions freezing its massive currency reserves held abroad meant it couldn’t pay and that Russia wasn’t to blame for any default, the first on foreign debt since the 1917 Bolshevik Revolution. The Credit Default Determination Committee — an …

Russia-Ukraine war: After Russia avoids default, what is next?
2 years, 8 months ago

Russia-Ukraine war: After Russia avoids default, what is next?

Al Jazeera  

Russia’s $40bn in bonds and the chance of default are closely watched amid the country’s isolation over the Ukraine war. Russia may have averted default as it announced it had made several overdue payments in dollars on its overseas bonds, shifting the market’s focus to upcoming payments and whether it would stave off a historic default. With the end of …

Despite payment, investors brace for Russia to default
2 years, 8 months ago

Despite payment, investors brace for Russia to default

Associated Press  

NEW YORK — Prices for Russian credit default swaps — insurance contracts that protect an investor against a default — plunged sharply overnight after Moscow used its precious foreign currency reserves to make a last minute debt payment on Friday. Russia used its foreign currency reserves sitting outside of the country to make the payment, backing down from the Kremlin’s …

Russia makes last-minute bond payment to avoid default
2 years, 8 months ago

Russia makes last-minute bond payment to avoid default

Associated Press  

NEW YORK — Russia staved off a default on its debt Friday by making a last-minute payment using its precious dollar reserves sitting outside the country, U.S. Treasury officials said. The amount of the payment was not disclosed, but earlier this month Russia’s finance ministry said it tried to make a $649 million payment due April 6 toward two bonds …

Why Russia stares at first foreign default in a century?
2 years, 8 months ago

Why Russia stares at first foreign default in a century?

Business Standard  

As the Russian invasion of Ukraine entered its 58th day today, its effects on the world economy are clearly visible now. Due to the series of sanctions, about half of Russia’s $640 billion of foreign currency reserves have been frozen. Meanwhile, Moody’s Investors Service has warned that Russia’s decision to make payments on debt, which was issued in dollars, in …

Russia may be in default on foreign bonds, Moody’s says
2 years, 8 months ago

Russia may be in default on foreign bonds, Moody’s says

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Russia may be in default …

Russia has defaulted on its foreign debt, S&P says
2 years, 8 months ago

Russia has defaulted on its foreign debt, S&P says

CNN  

London CNN Business — Russia has defaulted on its foreigndebt because it offered bondholders payments in rubles, not dollars, credit ratings agency S&P has said. The agency said this amounted to a “selective default” because investors are unlikely to be able to convert the rubles into “dollars equivalent to the originally due amounts.” According to S&P, a selective default is …

Credit rating agency S&P's downgrade indicates Russia headed for historic default
2 years, 8 months ago

Credit rating agency S&P's downgrade indicates Russia headed for historic default

Firstpost  

While Russia has signaled that it remains willing to pay its debts, the Kremlin also has warned that it would do so in rubles if its overseas accounts in foreign currencies remain frozen Boston: The credit ratings agency Standard & Poor’s has downgraded its assessment of Russia’s ability to repay foreign debt, signaling rising prospects that Moscow will soon default …

S&P downgrade indicates Russia headed for historic default
2 years, 9 months ago

S&P downgrade indicates Russia headed for historic default

Associated Press  

BOSTON — The credit ratings agency Standard & Poor’s has downgraded its assessment of Russia’s ability to repay foreign debt, signaling rising prospects that Moscow will soon default on external loans for the first time in more than a century. S&P Global Ratings issued the downgrade to “selective default” late Friday after Russia arranged to make foreign bond payments in …

Russia-Ukraine war: Moscow makes debt payment in rubles, a move that could result in historic default
2 years, 9 months ago

Russia-Ukraine war: Moscow makes debt payment in rubles, a move that could result in historic default

India TV News  

Highlights Russia made a debt payment in rubles, move that may not be accepted by Russia’s foreign debt holders Ministry of Finance said in a statement that it tried to make a $649 million payment toward 2 bonds. Russia has 30 days of leeway to catch up with its payments, investors have been betting on default Russia said Wednesday that …

Russia to pay bonds in rubles, which may cause default
2 years, 9 months ago

Russia to pay bonds in rubles, which may cause default

Associated Press  

NEW YORK — Russia said Wednesday that it made a debt payment in rubles this week, a move that may not be accepted by Russia’s foreign debt holders and could put the country on a path to an historic default. The Ministry of Finance said in a statement that it tried to make a $649 million payment toward two bonds …

US pushes Russia to the brink of default
2 years, 9 months ago

US pushes Russia to the brink of default

CNN  

New York CNN Business — Russia is in imminent danger of default after the United States cut off the country’s ability to pay its debt using frozen dollars sitting in American banks. Although the US Treasury had been allowing Russia to use some of its frozen assets to pay back certain investors in dollars, the Biden administration this week blocked …

Treasury bars Russia payments in dollars from US accounts
2 years, 9 months ago

Treasury bars Russia payments in dollars from US accounts

Associated Press  

WASHINGTON — The Treasury Department is moving to keep the Russian government from making debt payments at U.S. banks with U.S. dollars, restricting one of the strategies President Vladimir Putin is using to stave off default, an agency official said Tuesday. The Treasury decision comes after the agency previously said sanctions levied on Russia over its invasion of Ukraine still …

Russia faces deep recession that will ‘only get deeper,’ Treasury official says
2 years, 9 months ago

Russia faces deep recession that will ‘only get deeper,’ Treasury official says

CNN  

New York CNN Business — Sanctions leveled on Russia have pushed the country toward becoming a closed economy, a status the country is ill-equipped to handle, a senior Treasury official said on Friday. The goal of the sanctions is to debilitate Russia’s economy to the point that it weakens the country’s ability to use its military, the senior Treasury official …

Russia says it transferred bond payment to avoid default
2 years, 9 months ago

Russia says it transferred bond payment to avoid default

Associated Press  

LONDON — Russia’s Finance Ministry said it transferred a $117 million bond interest payment in an attempt to avoid a default on government debt but left it open if the money actually reached foreign investors by the deadline. The payment, which was due Wednesday, would be the first on foreign currency debt since Russia invaded Ukraine on Feb. 24. Russia …

Explained: What happens if Russia defaults on its debt?
2 years, 9 months ago

Explained: What happens if Russia defaults on its debt?

Firstpost  

Ratings agency Fitch said that ‘a default or a default-like process has begun’ because Russia missed a 2 March payment to foreign investors Ratings agencies say Russia is on the verge of defaulting on government bonds following its invasion of Ukraine, with billions of dollars owed to foreigners. Ratings agency Fitch said Wednesday that “a default or a default-like process …

Russia says it transferred bond payment to avoid default
2 years, 9 months ago

Russia says it transferred bond payment to avoid default

Al Jazeera  

The payments are seen as the first test of whether Moscow will meet its international debt obligations despite Western sanctions. Russia’s Ministry of Finance has said it transferred a $117m bond interest payment, indicating it could have avoided its first external bond default in a century. The payments, which were due on Wednesday but with a 30-day grace period, are …

EXPLAINER: What would a Russian bond default mean?
2 years, 9 months ago

EXPLAINER: What would a Russian bond default mean?

Associated Press  

Ratings agencies say Russia is on the verge of defaulting on government bonds following its invasion of Ukraine, with billions of dollars owed to foreigners. Ratings agency Fitch said Wednesday that “a default or a default-like process has begun” because Russia missed a March 2 payment to foreign investors, such as funds that invest in emerging market bonds. Western sanctions …

EXPLAINER: What would a Russian bond default mean?
2 years, 9 months ago

EXPLAINER: What would a Russian bond default mean?

India Today  

Ratings agencies say Russia is on the verge of defaulting on government bonds following its invasion of Ukraine, with billions of dollars owed to foreigners. Western sanctions from the war in Ukraine have placed severe restrictions on banks and their financial transactions with Russia, and also have frozen much of the government’s reserves of foreign currency. Ratings agencies have downgraded …

EXPLAINER: What would a Russian bond default mean?
2 years, 9 months ago

EXPLAINER: What would a Russian bond default mean?

Associated Press  

Ratings agencies say Russia is on the verge of defaulting on government bonds following its invasion of Ukraine, with billions of dollars owed to foreigners. Ratings agencies have downgraded Russia’s credit rating to below investment grade, or “junk.” Fitch rates Russia “C,” meaning in Fitch’s view “a sovereign default is imminent.” WHAT DOES THE FINE PRINT SAY? That could be …

Russia may be on the verge of a debt default. Here’s what that would mean
2 years, 9 months ago

Russia may be on the verge of a debt default. Here’s what that would mean

LA Times  

Ratings agencies say Russia is on the verge of defaulting on government bonds after its invasion of Ukraine, with billions of dollars owed to foreigners. Ratings agencies have downgraded Russia’s credit rating to below investment grade, or “junk.” Fitch rates Russia “C,” meaning, in Fitch’s view, that “a sovereign default is imminent.” What does the fine print say? That could …

Russia says it made a payment to avoid default
2 years, 9 months ago

Russia says it made a payment to avoid default

CNN  

New York CNN Business — Russia says it has ordered the $117 million in interest payments it owes Wednesday to be sent to investors, attempting to avoid its first international default in more than a century. That’s because the funds the country used to make the debt payments came from Russia’s frozen foreign assets, sanctioned because of its attack on …

What happens if Russia defaults on its debt?
2 years, 9 months ago

What happens if Russia defaults on its debt?

Al Jazeera  

Moscow must pay $117m in interest by Wednesday or risk defaulting on its debt. Russia’s economy is in dire straits and on Wednesday it faces its first payment on US dollar bonds since it invaded Ukraine last month. Russia’s default on its external debt would be its first since the Bolsheviks failed to recognize the Tsar’s debt following the 1917 …

Fears are growing that Russia will default on its debt. Here's what you need to know
2 years, 9 months ago

Fears are growing that Russia will default on its debt. Here's what you need to know

NPR  

Fears are growing that Russia will default on its debt. Here's what you need to know Enlarge this image toggle caption Dimitar Dilkoff/AFP via Getty Images Dimitar Dilkoff/AFP via Getty Images Investors are preparing for the very real possibility that Russia will default on its debt, an event that threatens to further isolate the country from the global financial system, …

Russia accuses West of seeking ‘artificial default’ over Ukraine
2 years, 9 months ago

Russia accuses West of seeking ‘artificial default’ over Ukraine

Al Jazeera  

Russia is ready to pay its debts ‘in roubles’ as a large part of its foreign currency reserves are frozen over Ukraine attack. Russia’s finance ministry has accused foreign countries of wanting to force Russia into an “artificial default” through unprecedented sanctions over its war in Ukraine and said it would meet its debt obligations. “The freezing of foreign currency …

Russia built an economy like a fortress but the pain is real
2 years, 9 months ago

Russia built an economy like a fortress but the pain is real

Associated Press  

Western sanctions are dealing a severe blow to Russia’s economy. Despite the punishing financial sanctions, Russia has built “an economy that’s geared for conflict,” said Richard Connolly, an expert on the Russian economy at the Royal United Services Institute in Britain. The Russian government’s extensive involvement in the economy and the money it is still making from oil and gas …

Russia-Ukraine: US, UK, EU, Canada sanction Russia’s central bank
2 years, 10 months ago

Russia-Ukraine: US, UK, EU, Canada sanction Russia’s central bank

Al Jazeera  

Measures aim to ‘disrupt Russia’s attempts to prop up its rapidly depreciating currency’, US Treasury says. “The unprecedented action we are taking today will significantly limit Russia’s ability to use assets to finance its destabilizing activities, and target the funds Putin and his inner circle depend on to enable his invasion of Ukraine,” Secretary of the Treasury Janet Yellen said …

Op-Ed: The West should stop financing Putin’s war
2 years, 10 months ago

Op-Ed: The West should stop financing Putin’s war

LA Times  

On Thursday, the first day of the full-scale invasion of Ukraine, the West paid Russia about $500 million. To be sure, disconnecting selected Russian banks from the SWIFT messaging system used by financial institutions to facilitate transactions worldwide will make it more cumbersome for Russian companies to be paid for European energy deliveries. And, unlike most central banks, since 2018 …

Sanctions spark Russia bank run fears as country braces for ‘free fall’ in rouble
2 years, 10 months ago

Sanctions spark Russia bank run fears as country braces for ‘free fall’ in rouble

The Telegraph  

The Kremlin is scrambling to stave off a run on Russian banks after Western nations announced a barrage of punishing sanctions. According to Reuters, central bank documents showed that it had ordered market players to reject foreign clients' bids to sell Russian securities from early Monday morning. The step came after the central bank on Sunday said it would provide …

Biden Announces New Economic Sanctions, Calls Putin's Moves In Ukraine 'Beginning Of Russian Invasion'
2 years, 10 months ago

Biden Announces New Economic Sanctions, Calls Putin's Moves In Ukraine 'Beginning Of Russian Invasion'

ABP News  

New Delhi: In retaliation to President Vladimir Putin's move in eastern Ukraine, the US has announced new sanctions against Russia calling it the "beginning of a Russian invasion". Speaking on the Russia-Ukraine crisis from the White House, US President Joe Biden said: "We are implementing full blocking sanctions on two large Russian financial institutions: VEB and their military bank." Sanction …

Russian banks imported $5 billion in foreign cash in December
2 years, 10 months ago

Russian banks imported $5 billion in foreign cash in December

CNN  

Russian ratings agency ACRA estimates that the country’s banks imported $5 billion worth of banknotes in foreign currencies in December, up from $2.65 billion a year before, in a pre-emptive step in case of sanctions that create increased demand. Around a half of Russia’s total banking foreign assets and liabilities, or some $100 billion and $70 billion, respectively, are held …

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