Facing the risk of default, Russia threatens to sue the West

“We will, of course, sue because we have taken all necessary steps to ensure that our investors receive their payments. We will present to the court with an invoice confirming the effort to pay by petition. foreign currency and rubles. This is not an easy process. We will have to work hard to prove it, despite all the difficulties,” – Minister Siluanov emphasized but did not elaborate on the selection. legislation of Moscow.

The statement shows Moscow’s tough stance in the financial war with the West.

“Russia has tried to pay foreign creditors in good faith. However, Western countries are deliberately implementing policies to create an artificial default event at all costs” – Minister Siluanov added, theo Reuters.

According to Mr. Siluanov, Russia’s foreign debt currently accounts for about 20% of the total public debt, which currently stands at 21 trillion rubles ($261.7 billion). Of these, about 4,500-4.7 trillion rubles are in foreign debt.

Russian Finance Minister Anton Siluanov. Photo: Reuters

“A financial and economic war is waged against our country. We are forced to act while striving to fulfill all our obligations. If we are not allowed to repay the debt in monetary units foreign currency, we will do this in rubles,” said Minister Siluanov.

Russia is facing default pressure for the first time in more than 100 years, after making agreements to repay international bonds in rubles, instead of dollars, earlier this week.

Russia defaulted on its debt, which was an unthinkable scenario until Moscow was simultaneously sanctioned by the United States and its allies in response to the Kremlin’s special military operation in Ukraine.

Credit rating agency Standard & Poor’s (USA) recently downgraded Russia’s ability to pay foreign debts, signaling that Moscow is facing an increased risk of default.

According to the news agency APthe move was made by Standard & Poor’s, which argues that sanctions against Moscow over the war in Ukraine are “likely to be added in the coming weeks, hampering Russia’s ability and will in the coming weeks.” compliance with terms and obligations towards foreign creditors”.

Oil prices fall

Oil prices continued their decline in early trading on April 11 in Asia, after member countries of the International Energy Agency (IEA) announced plans to release 60 million barrels of strategic reserves in the coming months. The next 6 months amid China continues to blockade Shanghai.

At the beginning of the 11-4 trading session in Asia, Brent and WTI oil prices at times dropped to $102.40/barrel and $98.18/barrel, respectively.

Last week, Brent fell 1.5% while WTI fell 1%. Photo: Reuters