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https://www.bbc.com/news/business-61929926 (https://www.bbc.com/news/business-61929926)

This is a technical default on the debt, although is not the common case - not having enough to pay - apparently is due to sanctions. The Russian Federation does have 100 million to pay, is that the government is unable to get them to the creditors, they argue.

The RF debt has becoming de facto toxic, even if its central bank has enough to pay, it may explode in the hands of whoever owns it or trades it. It is irrelevant if the debt can actually be honoured, only the vultures and bottom feeders will now lend to the RF.

And now.. let the Kremlin trolls break free..

It appears to be a technicality rather than an indication of russia going bankrupt.

(Could this leave russia with no other options aside from making payments in bitcoin.)

I don't think Putin will take this lying down. He will search for alternatives. But we shall see.

Maybe he has no alternatives?

They can't pay in Bitcoin, because the contract says the debt must be paid in USD. They tried to pay in ruble, but it's a breach of contract, which means it's a technical default.

Technical default is less severe than normal default, but it's still a problem. It means Russia will have a hard time borrowing money, or will have to do so on bad terms.

LOL... had a good laugh at this post. Russia is awash with money and they don't even need to take loans from the international creditors anymore (unlike the case with the US which is bankrupt). Russia is more than willing to make the payments. They made the payment to Euroclear on stipulated time, but it got stuck at the Euroclear bank due to sanctions. Technically, western moonbats can claim it as one of their victories. But their victory is as hollow as the one they are having in Ukraine right now. Since Russia already made the payment to Euroclear, I would not consider this as a default. The money got stolen by Euroclear and will be distributed to the creditors when it is recovered.

I have seen this news recently in many media and I had not stopped to look at the detail, but now that I do, I have to agree with Sithara007.

"Russia is believed to have defaulted on its debt for the first time since 1998 after missing a key deadline."

Lol.

"Russia has the money to make a $100m payment, which was due on Sunday, but sanctions made it impossible to get the sum to international creditors."

Come on, the allies are eager to break the news that Russia has defaulted. If we want to call it a default, well, more as a matter of semantics than as a description of reality, because it has nothing to do with Argentina's default in 2001, for example.

Basically I understand it, in a war, propaganda is also important, and this is propaganda on the part of NATO, that since they do not enter into direct conflict to avoid a nuclear war, they make war with things like this.

Is Russia swimming in money? Yes, they even refuse to put out their fires because it is already expensive for Russia. So, the Federal Forestry Agency of the Russian Federation stated that part of the forest fires in Yakutia, the Magadan Region and the Chukotka Autonomous Okrug will not be extinguished. The Russian authorities do not give a damn about nature, and, perhaps, massive clearings are attributed to fires. Such a move from a country whose army invades and seizes foreign territories is not surprising. The Russian occupiers are also exporting grain from Ukraine, so this is not the first time they have been given theft for something else. Huge areas will be allowed to burn: in the Chukotka Autonomous Okrug - 22,100 thousand hectares, in the Magadan Region - 2,200 thousand hectares and 5.8 thousand hectares in Yakutia.

Regarding the default. This is how international sanctions work. Even if Russia can pay this amount, but the sanctions have made it such conditions that it cannot do it. Sanctions are designed to make sure that the aggressor does not feel free in this world and put pressure on him in any non-military way so that he stops the war he unleashed in Ukraine.

This is no big deal. I guess that the western propaganda wants to brag about something related to Russia, but nobody cares.
I'm not a fan of Putin and his regime, but in reality, Russia doesn't need loans and not having the opportunity to borrow money on the global financial markets isn't such a big deal for the Putin regime. On the other hand, Ukraine needs loans to refinance it's old debts and the western world will gladly borrow them the money(probably the money will come from the confiscated assets of the Russian central bank, who knows?).
The western media was making a comparison between the current technical default and the 1918 default, which happened after the communist revolution in Russia. Pretty stupid comparison, if you ask me, because the bolsheviks actually didn't want to pay the debts of the Tsarist regime to the western capitalist countries.

Sri Lanka and Russia, these two countries this year failed to pay their debts to creditors, but what is the difference between these two countries? why are creditors going after the Sri Lankan government? whereas creditors are less concerned when Russia defaults on their debts? that's because Russia has plenty of resources at their disposal and money in Chinese banks or creditors are too afraid to protest against Putin.

I remember some weeks ago Russia attempts to pay her debt was rejected and she ended up paying through an organization that ended up seizing it. I think this is the kind of things you go through when you move against the evil system.  And I won't be surprised if the intention is to make things look like Russia is unable to pay her debt whereas her economy is doing pretty well, better than before.

Do not forget that Russia has over $100 billions in foreign reserve that was stolen/seized in the name of sanctions. That she will recover through force once she is done with special op in Ukraine & the Pro Russia region Donbas

Sri Lanka is bankrupt and doesn't have any forex reserves. On the other hand, forex reserves of Russia is one of the largest in the world, and they have enough funds to make the interest payments. These two countries can't be compared side by side, as the situation is entirely different. One similarity that I could notice is that the ruling class is extremely corrupt in both the cases. But at least in case of Russia, the rulers have made sure that their corruption won't result in the total bankruptcy of the country.


LOL.. this is what you got? A few forest fires raging in Siberia is the sign that Russia is bankrupt.

I do not think that they care about this that much. These are type of money that they would be able to pay with their eyes closed, there is absolutely nothing wrong with the debt and they could pay that easily in a single signature with a swift move. This is a nation that has thousands of people with 100+ million dollars, and this is also a nation that has much more in the coffers as well, so they can pay this easily.

However, they prefer not to because they basically decided that if the west doesn't want to work with them then they do not want to work with the west as well and they are going to just play the bully like they were expected to.

A said, yes it is technical, the problem being that it is irrelevant why - all that matters is that the creditor is not getting the money they are owed, which means that RF debt is now bad debt.

The RF cannot pay in bitcoin because the conditions of the credits are to be paid in USD. Is like the Oil and Gas contracts: it has to be USD (not roubles, not dirhams, not bitcoin... well you get the idea)


Well, you know ... if they do not need credit why do they have credits? Unpaid credits.

Glad you keep good spirits, if you live in the RF you are going to need it for quite a few years.

The Russian Federation has reserves and is a exporting country. Yet... many of the reserves are not frozen, sanctions are slow but implacable,...  I guess good humour is going to be really important. And vodka too.

As said, it is technical, but it is failed.


Irrelevant. As a lender, all I care is about the payments and these are not coming. I have know a few people that drove around in Mercedes and did not pay their debts.


The west has not confiscated the RF reserves. They are simply frozen to avoid these being used to pay for the killing of Ukrainians. It may come to actually starting to confiscate if this war drags on, but for now, very few assets have been confiscated as such.

There is no default, not even a technical one. The statements of the rating agencies in this case are an empty phrase, for a default a quorum of investors is needed who could not get their money, but there is none.

Let's say that they are in DT1 and your Ministry of Creative Financing has a T:-3 -  It does not matter if it is technical or not, and it does not matter if you deny or not. The largest investment institutions in the world have a mandate that uses those ratings and now they will sell all the RF debt and will not buy any more. It is exactly the same as when you tell people that "a western missile system has been destroyed", the missiles are still there killing the young RF soldiers.

The effect of this is clear: if the RF wants to pay anything in Euros or USD (sorry, most countries that have stuff worth selling do not accept Roubles), it cannot take any debt in US or EURO, it will have to come directly from the reserves. That is, anything that has not been frozen yet.

Just in case you feel like denying...

https://edition.cnn.com/2022/06/27/economy/russia-debt-default-sanctions/index.html (https://edition.cnn.com/2022/06/27/economy/russia-debt-default-sanctions/index.html)

https://www.ft.com/content/28817b4e-427c-44c1-88b4-38b79e3da7f0 (https://www.ft.com/content/28817b4e-427c-44c1-88b4-38b79e3da7f0)

https://www.bloomberg.com/news/articles/2022-06-26/russia-defaults-on-foreign-debt-for-first-time-since-1918 (https://www.bloomberg.com/news/articles/2022-06-26/russia-defaults-on-foreign-debt-for-first-time-since-1918)

https://www.themoscowtimes.com/2022/06/28/moodys-declares-russia-in-default-a78127 (https://www.themoscowtimes.com/2022/06/28/moodys-declares-russia-in-default-a78127)

https://www.marketplace.org/2022/06/27/as-russia-defaults-on-its-foreign-debt-sanctions-blitz-batters-economy/ (https://www.marketplace.org/2022/06/27/as-russia-defaults-on-its-foreign-debt-sanctions-blitz-batters-economy/)

https://www.abc.net.au/news/2022-06-28/why-has-russia-defaulted-on-its-foreign-debt/101190578 (https://www.abc.net.au/news/2022-06-28/why-has-russia-defaulted-on-its-foreign-debt/101190578)

How do you imagine it, to whom foreign investors can sell Russian bonds now, who will buy them? With its destructive actions, the West itself robs its investors, preventing them from making a profit that Russia is ready to pay. Russia has all the payments in its hands, the money for the coupons has been transferred, both in dollars and in rubles with the possibility of exchanging them for dollars. Further it is the problem of the West how to deal with their investors who want to return their money. Russia has fulfilled its obligations in full.

All this hysteria around a technical default was created with one goal - to find at least some legal hooks for withdrawing the frozen funds of the Central Bank of Russia. Well, good luck.

Vultures and bottom feeders? You Chinese friends (LOL)? My honest answer is I could not care less, but I am sure it is going to be for pennies on the dollar. Investors in the west know what it means to buy RF debt, as they know what it means to buy Chinese Companies "shares" or invest in West Africa - risk is there, if you do not like it, do not take it.

It is curious how expensive wars tend to be... and when you have to pay for them with real money... ouch!

I can't imagine that they would waste all that wood and not even export it, with the sanctions that they have on them.

What if the the areas have Russian settlements in them, the agency will just ignore it too?

Russia is the champion of the planet in terms of the sanctions imposed against it.
This whole situation shows the failure of the global banking system and suggests that it is time to change it. Therefore, I have no doubt that the future will be with cryptocurrency technologies.

It seems a bank in Russia is about to lend a country about $500m. Russia should be able to take part of that if she is in dire need of money, then she can pay back later.
Hope you understand the irony here.

I have no idea but if it was anything similiar to the Civilisation games, then a country would need to pay heavily for war. But I have nothing realistic to compare it to. I doubt Russia can keep up their superficial ruble price up for very long as their reserves will, at some point run out and nobody big but China and India are willing to do business with them. And even then, Russia is being financially and politically exploited as much as possible while India and China are following sanction guidelines.

Lets see how things look after a year or two of war. I doubt it will end anytime soon.

It's only on foreign debt, and yes, it's only a technical default. So I think some might overestimate this event because it's a default without truly not having money. That being said, it's not a completely useless event because an event and a declaration like this sounds serious, and it is historical (first time since 1918 for Russia), so it can scare away investors who weren't scared by the war already. Apart from the panic, uncertainty and big reputational damage to Russia (they were doing their best to avoid a default announcement), this doesn't mean much.

The thing is, the "bet" for buying those bonds would basically be "they are not paying it to USA or to the west, but if we buy it then they could pay to use" type of stuff. Which means they will get sold to someone, and that someone could collect it easier.

Will that work? I doubt so, but if Russia really wants to put salt to the wound, they could end up waiting for the debt to be bought by someone else and then pay it and make it known to the whole world that they will not pay their debt to anyone who put sanctions on them, and will pay all of their debts fully if it is their friends. Will that happen? I have no idea, but that is the thinking behind most people who would consider buying these bonds.

Missing the point I am afraid, the largest institutional investors of the world are forbidden to invest in anything that is not classes "investment grade". Sure, the RF be able to sell their debt to someone, somewhere... at much higher rate and to much more demanding buyers that it could ever find in the open markets.

Overall, it is not a huge problem for the RF, but it is still a problem in a moment where they may have big needs.

 Yes, the freezing of external assets in foreign currencies really hurt the Russian economy, so she was not able to pay this debt now.  Instead, she will pay this sum in rubles, now this is the only possibility. The United States wanted Russia to be unable to pay its debt and she got it. I think this cannot be called a default, it is rather the repayment of debt with the national currency.

Nope. Freezing of a part of the reserves doesn't take away the capability of Russian government to repay these loans. As I mentioned earlier, they have already made the payment to the Euroclear bank. The payment is stuck at the bank and not from the side of the Russians. Imagine this - you took a loan from your friend. After one month, you made a partial repayment to him through the bank. You made the payment, but it got stuck at the bank due to a technical issue. Will your friend blame you for this trouble? I don't think so.

Well they should understand that they did it for the first time since 1998 which also means that they would be not only tacking sanctions but worldwide issues with it as well,. It would be a good time for them to stop 🛑 the war altogether and apologize, replay the Ukranians and step back because they are already almost in the EU now and being the candidate they would have a massive support from everywhere and this means that the Russians would not be able to get a lot of positive news from any side as well, their military supply is blocked as well and they have to understand that even if they keep the value of rubles stable they won't be having much floor under their feet since it's all relative.

I guess those games are not "far" from reality, the reason why you are capable of attacking everyone and win is the fact that it's a game and nobody overthrows you, and if you tried that in real life you would be getting overthrown very quickly for killing innocent people unless you are Putin of course.

The money side of things has always been the biggest problem in all games where you have an army attacking a place, civilization, crusader kings, total wars, anything you play will have a money aspect and you either do not have a big army, or you need to attack places to earn money to pay for your big army. Russia is paying a ton to this war, and technical debt is still debt, and USD is required for sure.

It is foolish to say that Russia has run out of money. They are. But they are difficult to use, such a funny story :)
And this was done not to destroy the economy, but indicative! To show that nothing depends on Russia in this world! That they can't even use their money to pay their debts :)
This is a "demo version", it will be more fun and interesting!

And as to whether there are alternatives to the pathetic likeness of the Fuhrer - the answer is NO! Of course, he can beg for money from China, but in return, he will give China, its historical territories beyond the Urals. True, he will tell his slaves that he brought the USA to its knees, and now they are still more afraid of the second army in the world ":)
But in fact - you understand very well - Russia has received a "black mark" in the financial sector, and not a single adequate country will no longer lend to the backward economy of Russia and personally to the terrorist and murderer of Putin! Although there is an option that some country, not very adhering to the norms of international law, lends money to the Kremlin ghoul, provided that he sells 1 million hectares of Russian territories for 1 dollar, as Putin has already done with huge areas in the far east of Russia :)

LOL - your are right. Russia is strong and Russia is powerful.
the point you have mentioned that it is foolish to think the Russians are of money - is very valid. Russia is going on fast track toward their goal and there is no stopping.

And here is a selection of fast running ... to the bottom of civilization :) All these are the results of the first week of July :

- The Russians plundered the museums of Mariupol. Original paintings by Aivazovsky and Kuindzhi stolen
- Lavrov left the meeting of the G20 Foreign Ministers in disgrace, after the total boycott of the representative of the country of the world terrorist, by the participants of the meeting
- A large energy project worth 37 billion was stopped due to sanctions - General Electric refused to supply a new turbine for the Zainskaya GRES in Tatarstan, and Putler "raised Russia from its knees" in such a way that without General Electric turbines, Zainskaya GRES will not be upgraded, but closed.
- "Tasty - and the point" (stolen McDonald's) removed french fries from the menu due to crop failure. Potatoes are expected to return to the menu in the fall. But it is not exactly
- The largest lead plant in Russia, Fregat, has been shut down. Four more lead enterprises are on the verge of stopping - Ryaztsvetmet, Ecorusmetall, Agropribor and UMMC.
- In Russia, presented 5 models of the new car "Moskvich". It sounds very patriotic, if not for a single "but" - they, as expected, turned out to be models of the Chinese manufacturer JAC, who condescendingly allowed the Russians to assemble them under their Moskvich nameplate. Nameplates "Moskvich" Russia will also ask China to produce, since they themselves do not have the technology for this :)
- Oil prices began to plummet amid a statement by Deputy Head of the Security Council of Russia Dmitry Medvedev in his Telegram channel about the growth in oil prices "above the predicted astronomical price of 300-400 dollars." I love Russian clowns-morons :)
- As a result of limiting the price of Russian oil, the possibility of which was agreed last week by the leaders of the G7, this product can become cheaper for buyers by about half the current price. Now $40 per barrel will be not only for India and China :) And for India and China it will be $20 each. As always, "Russia outplayed everyone" by shooting itself in both legs and ass :)
- On Monday, July 5, Russian oil was trading at $80 per barrel. This is the spot price ("here and now"). So China and India are buying oil below $40 per barrel (waiting for clarification)
- Iran and Russia are increasingly reducing oil prices in the struggle for the Chinese market. Moscow began actively supplying oil to China after the invasion of Ukraine, as sanctions significantly reduced the ability of the Russian Federation to export raw materials to Europe. Therefore, Iranian producers have to reduce the price of their oil, as China remains the only major market for rogue states such as the Russian Federation and Iran.
As a result, Urals has halved in price in two months amid a decline in dollar prices and a fake/artificial strengthening of the ruble.

Cool, right? You can see the path of the world leader  ;D