Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Russia Fails to Pay Debt but Denies Default


Tue 28 Jun 2022 | 07:12 PM
Ahmad El-Assasy

Due to sanctions over the Ukraine offensive, Russia revealed on Monday that two of its debt payments have been prevented from reaching creditors, bringing the nation closer to experiencing its first international default in a century.

The decision was made on the 124th day of Russia's military operation in Ukraine, according to AFP, and sanctions from the West have so far been ineffective in getting Moscow to reverse direction.

The country's connection to the global financial system has essentially been severed by the Western economic sanctions, making it challenging for Moscow to pay its debts.

Russia revealed on Monday that two of its debt payments have been prevented from reaching their creditors, bringing the nation closer to experiencing its first international default in a century as a result of the sanctions related to the incursion in Ukraine.

The decision came on the 124th day of Russia's military operation in Ukraine, according to AFP, and despite Western sanctions, the Kremlin has not yet been persuaded to reverse its course.

Moscow now finds it difficult to pay its debts because of how much the Western economic sanctions have cut off the nation from the global financial system.

The United States eliminated an exemption last month that permitted US investors to receive payments from Moscow, which left Russia without the final means of repaying its foreign-currency debt.