Russia is close to a sovereign default: a technical one, it could start as early as May 4 if the country fails to pay off its INF obligations in dollars. This was written on Wednesday, April 20, by The Wall Street Journal.
On April 6, Russia paid its dollar holders interest on ruble-denominated bonds after JPMorgan Chase & Co. released a payment in the amount of 649 million US dollars from the accounts of the Central Bank of the Russian Federation. These accounts were frozen as part of the measures taken against Russia for prisoners of war detained in Ukraine.
However, the contracts for these bonds do not provide for the possibility of paying interest in any other currency than other currencies. “This could be seen as a default,” Moody’s analysts say.
The probability of Russia’s sovereign default is estimated at 93%
If holders of Russia’s external loan bonds do not receive payments in dollars, they contribute to the intensification of credit default operations – contracts that are fixed that the investor returns most of the funds in the event of a withdrawal default. Such contracts, included in the composition of Russia’s obligations, are already worth $6 billion in total.
Since the beginning of the war between Russia and Ukraine, the value of such contracts has skyrocketed. If in early February it amounted to only 5% of the insured amount of Russian debt, then on Wednesday, April 20, this figure had already reached 73%. This means that market participants now estimate the probability of a sovereign default in Russia at 93%.
Meanwhile, the Ministry of Finance of Russia stated that it is most often ready to go to court if foreign states declare the Russian Federation bankrupt.
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German companies in the Russian market
BASF
Global chemical industry leader, mainly associated with oil and gas subsidiary Wintershall. She created the Achimgaz joint venture with Gazprom, which produces gas in Urengoy, is a co-owner of the Yuzhno-Russkoye field in Siberia, the Nord Stream gas pipeline and the offshore section of the South Stream being built. In addition, she, together with Lukoil, produces oil in Volgograd.
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German companies in the Russian market
E.on
Germany’s leading energy company has invested 6 billion euros in the Russian power industry since 2007. Today, E.ON Russia produces 6 percent of all electricity in the Russian Federation. E.on is one of the EU’s largest importers of Russian gas. Together with Gazprom, the concern owns shares in the Yuzhno-Russkoye oil and gas field in Siberia and in the Nord Stream gas pipeline.
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German companies in the Russian market
Siemens
Germany’s leading technology concern in terms of German affiliation, disparate electrical industry, mainly turbines for power plants and rail transport systems. These are high-speed Sapsan and Lastochka electric trains. Siemens is actively engaged in its production: in Russia, about 3,000 people work at its factories and joint ventures.
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German companies in the Russian market
Volkswagen
Europe’s leading automaker has invested over 1.3 billion euros in Russia and has become the most important foreign investor in the Russian automotive industry alone. Since 2007, he has been producing Volkswagen and Skoda cars at his plant in Kaluga. In 2011, the concern announced the contract assembly of cars at the GAZ plant in Nizhny Novgorod.
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German companies in the Russian market
German railway
The German State Railway Company is represented in Russia by firms, four of which are 100% owned by its doors. Among them is DB Schenker Russia, which provides a full range of logistics services. One of the areas of long-standing cooperation with Russian Railways is the development of the China-Russia-Europe transport corridor.
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German companies in the Russian market
underground
Few of the foreign patients have grown their business in Russia in recent years at the pace that Germany’s leading trading concern has. Since 2001, Metro has opened 73 Metro Cash & Carry shopping centers in 45 Russian regions, creating more than 18,400 jobs. In addition, there are 57 Media Markt household appliances and electronics stores in 27 places in the Russian Federation.
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German companies in the Russian market
Henkel
For the leader of German household chemicals, which produces, in particular, washing powders, shampoos and adhesives, Russia became the fourth in terms of sales market conference in the world. Approximately 2,500 people work at Henkel’s eight Russian enterprises. The company’s plant in Perm is the owner of the largest synthetic detergents in the Russian Federation.
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German companies in the Russian market
DHL
A subsidiary of the German logistics concern Deutsche Post has purchased one of the most important express delivery networks in Russia for 30 years of operation on the Russian market. The company has over 150 representative offices in the Russian Federation, about 950 commercial vehicles transport its clients’ correspondence and cargo, and it detects its own charter flights in Europe every day.
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German companies in the Russian market
Adidas
The world’s second largest manufacturer of sportswear, footwear and equipment has been holding the market leader’s share in Russia since Soviet times. Today he has about 1,000 branded stores on the territory of the Russian Federation. The company is a partner of the Russian national football team, so that at the 2014 FIFA World Cup in Brazil, the Russian football league entered the field in the form of Adidas.
Author: Andrey Gurkov