The odds of Russia defaulting on its external debts are increasing the longer the war in Ukraine lasts, a broad array of organizations and analysts warn. With the international community applying pressure on Moscow over its invasion of Ukraine, the national economy is poised to contract double digits, prompting the Kremlin to repeatedly employ extraordinary measures to cushion the blows from the economic fallout. Over the next month, the Russian government has more than $700 million worth of bonds to cover. Despite its $630 billion war chest, the bombardment of sanctions and restrictions that are freezing many of its assets could impact Moscow’s ability to make payments. The Central Bank of Russia announced Tuesday that it would temporarily ban coupon payments to foreign owners of ruble bonds, also known as OFZs. In an email obtained by Bloomberg, officials transmitted instructions to depositaries and registries that local security sales by foreigners …
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