Kremlin rejects Russian default, says bond payments executed

(HRNW) – The Kremlin on Monday rejected claims that it has defaulted on its external debt for the first time in more than a century, after a grace period on $100 million interest payments ran out. read more

In a call with reporters, Kremlin spokesperson Dmitry Peskov said Russia made bond payments due in May but the fact they had been blocked by Euroclear because of Western sanctions on Russia was “not our problem”.

Russia has struggled to keep up payments on $40 billion of outstanding bonds since its invasion of Ukraine on Feb. 24, as sweeping sanctions have effectively cut the country off from the global financial system and rendered its assets untouchable to many investors.

Russia has long said it has the money to pay, calling the default artificial as sanctions block foreign bondholders from receiving the cash. On Monday, a U.S. official said the default showed how dramatically the sanctions were impacting Russia s economy.

Around a half of Russian gold and foreign exchange reserves – some $300 billion – were earlier blocked by western sanctions imposed after Moscow sent troops to Ukraine.

“Our position is well known. Our reserves are blocked unlawfully and all attempts to use these reserves will also be unlawful and would amount to outright theft,” Peskov said.

Be the first to comment on "Kremlin rejects Russian default, says bond payments executed"

Leave a comment

Your email address will not be published.