For the first time in more than a century, Russia has failed to pay its due international obligations. According to the White House, it is proof that anti-Russian sanctions work and have effectively hit the Russian Federation. This is mainly due to its separation from the international financial system.
Russia did not pay their debt
Russia has been unable to pay about $100 million in interest on its debt, which is in the hands of foreign creditors and which is partly denominated in dollars, partly in euros. Holders of Russian government bonds have previously said they have not received interest by the due date, and on Sunday, June 26, the deadline by which the Russian Federation had yet to pay its obligations passed.
Moscow, however, defends that it has the means to pay the interest, but that it has been prevented from paying by the West. Russia thus denied that it was its insolvency or unwillingness to pay the interest owed, and that it was an artificially induced default.
Russian default is inevitable
“Since March, we have been convinced that Russian default is probably inevitable. And it was only a matter of time before it happened,” Dennis Hranitzky of law firm Quinn Emanuel told Reuters. Kremlin spokesman Dmitry Peskov said payments were made impossible by the West and therefore “this is not our problem.”
