April 29, 2022 9:28:08 PM
April 30, 2022 10:33:56
Russia has made a number of already overdue international debt payments in dollars despite previously promising they would only be paid in rubles.
It was still unclear whether the money would go to the United States and other Western countries that sanctioned Russia, but it represented another major twist in the game of financial chicken that has developed around a possible fault.
Russia’s Finance Ministry said it managed to pay $564.8 million on a 2022 Eurobond and $84.4 million on a 2042 bond in dollars – the currency specified on the bonds, Reuters reports.
The ministry said it had funneled the necessary funds to the London branch of Citibank, one of the so-called bond-paying agents whose job it is to pay them out to the investors who originally loaned the money to Moscow.
Russia has not experienced any failure of any kind since the financial crash of 1998 and has not experienced a major international or “external” market failure since the aftermath of the Bolshevik Revolution of 1917.
The risk of another, however, is now a flashpoint in the economic struggle with Western countries that have showered Russia with sanctions in response to its actions in Ukraine which Moscow has called a “special military operation”.
The bonds were originally due to be paid earlier this month, but an additional 30-day ‘grace period’ that government bonds often have in their terms meant Moscow’s final deadline was May 4. .