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Russia to default for first time in a century as payment deadline looms - THE TELEGRAPH

JUNE 24, 2022

Russia is poised to default on its international debts for the first time in a century this Sunday, after time runs out for Moscow to make about $100m of overdue payments.

After narrowly swerving a default in April, Vladimir Putin faces a symbolic blow after failing to pay international creditors in time.

A 30-day grace period on coupon payments due last month will run out this weekend.

A default has looked inevitable for weeks after the US Office of Foreign Asset Control removed an exemption allowing US bondholders to receive payments from Russia – leaving the Kremlin out of options.

It would likely stop Russia from raising money on Western markets, a situation that could become more damaging if the contagion spreads to corporate bonds.

Russia has responded angrily to the situation, claiming the default has been engineered by Washington. It has insisted it is willing and able to pay.

Anton Siluanov, its finance minister, called the situation a “farce”.

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