Russia defaults on foreign debt for first time since 1918 Bolshevik revolution

Russia has defaulted on its foreign debt obligations for the first time since the Bolshevik revolution in 1918.

Sanctions launched by an alliance of western nations in response to president Vladimir Putin’s invasion of Ukraine have hobbled the Kremlin’s access to its assets, meaning it has been unable to pay foreign investors.

Moscow missed a grace period deadline today on a $100m interest payment that was originally due on 27 May, tipping the country into default for the first time in over a century.

An US official said at today’s G7 summit that the default shows “just how strong the actions are that the U.S, along with allies and partners have taken, as well as how dramatic the impact has been on Russia’s economy”.

Also Read: China Expected to Cut Back on Lending to Africa Amid Coronavirus Crisis

Russia insisted it has the means to fulfill its foreign debt obligations and blamed sanctions for leaving creditors out of pocket.

The Bolsheviks stopped paying foreign investors in the early 1900s amid the Russian civil war to keep assets in the country to strengthen the economy.

America’s Treasury department blocked Russia from making payments last May, effectively sealing its fate of falling into default.

The world’s top rating agencies earlier this year downgraded Russian debt to the among the lowest wrongs on their debt safety ladder.

Subscribe to Notifications