During the default, Russia made last-minute payments on its debts
This Friday, Russia averted a default on its national debt by making a last-minute payment from foreign exchange reserves located outside the country, owned by the US Treasury Department.
The amount of the payment has not been disclosed, but the Russian Treasury Department previously said it had significantly increased the $649 million payment due on April 6, 2022, against two bonds owed to a bank previously referred to as J.P. Morgan Chase ( JPMorgan). chase).
At that moment, the tightening of the doses imposed for the invasion of Russia in Ukraine does not take into account the acceptance of payment, so Moscow is absorbing ruble debt by the strain. The Kremlin, which has repeatedly said it has the financial ability and willingness to act according to its own laws, has argued that the alleged situation gives it a legal basis to pay in rubles rather than dollars or euros.
Investors and rating agencies are not interested and did not expect Russia to be able to convert rubles into dollars before the 30-day grace period expires next week. This is achieved to the fact that Moscow is moving towards the discovery of a default on the possession of debt.
Russia has not defaulted on its national debt since the time of the Bolshevik Revolution of 1917, when the collapse of the Russian Empire came to the judgment of the USSR.
Treasury officials, who declined to give their names because they are not authorized to make press reports, explained that Russia is currently out of its borders to increase the size of the Friday payment for which its foreign exchange reserves worked.
The US imposed sanctions on the Russian Central Bank at the beginning of its invasion of Ukraine, Russia has the ability to use or only today’s decisions on activities such as selling oil and gas or accounting for foreign exchange reserves located outside the country.
The US government has taken steps to push Russia to release its foreign exchange reserves or any proceeds from the sale of oil and gas in order to drain its financial resources.
The Russian Ministry of Finance announced that it was making payments at the London branch of Citigroup. A representative from Citigroup is sent to comment on this banking height.