Rolling coverage of the latest economic and financial news
- Russia faces debt repayments on Wednesday
- Finance ministry: Payments will be made in roubles if sanctions prevent access to foreign currency reserves
- Russian default on debts no longer ‘improbable’, says IMF head
- Rishi Sunak urges UK companies to stop investing in Russia
- What happens if Russia can’t pay its debts after western sanctions?
This chart shows how the value of Russia’s debts has plunged since the war began, while the cost of insuring them using a credit default swap has soared:
The government is due to pay $117m on two of its dollar-denominated bonds. But it has been signalling it will not, or if its does it will be in roubles, tantamount to a default.
Technically it has a 30-day grace period, but that is a minor point. If it happens it would represent its first international default since the Bolshevik revolution over a century ago.
