According to Moody’s, Russia has defaulted on its foreign debt for the first time since 1918. Moscow claims its ability to make the payments have been impaired by the tough economic sanctions imposed following its invasion of Ukraine.
This article by Siladitya Ray and Sergei Klebnikov, writing for Forbes, makes the following points:
- Credit rating agency Moody’s has confirmed that Russia’s missed coupon payment constitutes a ‘default’, adding that further defaults are likely.
- Unsurprisingly, Russia has blamed economic sanctions by the West for creating ‘artificial barriers’ that prevent it from making the payments.
- Bloomberg notes that the impact of the default will primarily be symbolic and Russia is unlikely to face the need to raise additional foreign debt anytime soon due to the massive revenue it receives from oil and gas exports.
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