Russia announced a default on foreign obligations!!!

[DrBeer]

Russia announced a default on foreign obligations!!!

Today something happened that probably no one expected so quickly. As it turned out, not only the army is fake in Russia, but also the financial system and economy. What is your opinion, gentlemen - why did the "super-power" with the "strongest international weight" deflate so quickly? 

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[Hydrogen]

The article I saw on CNN said russia paid its foreign debt in rubles rather than us dollars.

Russia has defaulted on its foreign debt, says S&P

London (CNN Business)Russia has defaulted on its foreign debt because it offered bondholders payments in rubles, not dollars, credit ratings agency S&P has said.

Russia attempted to pay in rubles for two dollar-denominated bonds that matured on April 4, S&P said in a note on Friday. The agency said this amounted to a "selective default" because investors are unlikely to be able to convert the rubles into "dollars equivalent to the originally due amounts."

https://www.cnn.com/2022/04/11/investing/russia-default-sp/index.html

Which the S & P called a default.

But it can still be worked out and a settlement made.

[avikz]

When Russia has been thrown out of SWIFT system, how they are supposed to pay their debt in USD?? It seems OP has fallen prey of US media manipulation.

Read the actual news here,

https://www.reuters.com/world/europe/russia-will-take-legal-action-if-forced-into-sovereign-debt-default-newspaper-2022-04-10/

Hope it makes sense! Russian government has already made arrangements to repay the debt in Rubble instead of USD. It isn't a default.

[DrBeer]

No, I understand that now some will sing the mantras "this default is not such a default", "this is not the correct default, only Russia should declare it", "we all believe that it is not such a default". But a fact is a fact - Russia has not been able, and will not be able in the foreseeable future, to fulfill all the conditions for calculating external debts! please tell me - who needs the ruble, if they lent dollars or euros? There is no need to tell "at least a ruble is better than nothing" - there will be no option with "nothing", there will be a forced seizure of assets, there will be a fine, there will be prosecution of assets around the world. And so many more times - this year Russia is waiting for at least 2 huge payments!

So what happened that the "greatest economy" suddenly ran out of dollars?

[Findingnemo]

So what happened that the "greatest economy" suddenly ran out of dollars?

They were frozen and some article says its over 100 billion USD combined with total of 640bn reserves frozen due to these sanctions so they can't really pay in USD now and if there is a way probably in gold?

Well, western countries are in need of rubles right now this can be the game changer because the Russia's announcement that unfriendly countries can only buy their oil with ruble means USD actually becomes worthless in Russia,this ain't affected the USD value but it just showed that USD may fall and lose its reserve currency status if they lose more countries relationships and start imposing sanctions.

[Smartprofit]

In my opinion, Russia's default is not such an important event (against the background of other events).  In fact, this is one of the episodes of the economic war between Russia and the West. 

On the one hand, Russia is not being given the opportunity to repay its debt obligations, and on the other hand, Russia does not want to spend the rest of its gold and foreign exchange reserves, which have not yet been confiscated. 

By the way, the default was announced by one of the largest infrastructure companies in the Russian Federation - Russian Railways. 

It seems to me that now all financial subtleties are not important.  The basic global agreements have already been violated and this will of course have long-term consequences for the whole world.  Now the real economy is coming to the fore - logistics, container transportation, agriculture, industrial production, communications, telecommunications, speed and quality of managerial decision-making.  Otherwise, hunger, destruction of infrastructure, man-made disasters, etc. 

No one pays any attention to the risks of defaults.  This is not a serious threat.

[Ozero]

So what happened that the "greatest economy" suddenly ran out of dollars?

They were frozen and some article says its over 100 billion USD combined with total of 640bn reserves frozen due to these sanctions so they can't really pay in USD now and if there is a way probably in gold?

Well, western countries are in need of rubles right now this can be the game changer because the Russia's announcement that unfriendly countries can only buy their oil with ruble means USD actually becomes worthless in Russia,this ain't affected the USD value but it just showed that USD may fall and lose its reserve currency status if they lose more countries relationships and start imposing sanctions.

More than half of the amount of 640 billion reserves of Russia, which were in banks outside of Russia, were frozen. In addition, the assets of sanctioned Russian enterprises, their officials, oligarchs and even ordinary citizens are also frozen for the implementation of the imposed sanctions. It is assumed that in the future they will be used to compensate for the damage caused by Russia's military operations in Ukraine.

Russia's problem is that it is not a high-tech state. Its economic power rested on energy resources, which it simply extracted from its bowels. As soon as the international community took a number of measures, including the refusal to supply Russian oil, gas and coal, Russia "deflated".

The Russian military is now deliberately heavily destroying infrastructure in Ukraine. Therefore, the civilized world must use any means to crush the unbridled aggressor country.

[be.open]

Russia's problem is that it is not a high-tech state. Its economic power rested on energy resources, which it simply extracted from its bowels. As soon as the international community took a number of measures, including the refusal to supply Russian oil, gas and coal, Russia "deflated".

Russia's problems are fools and roads. What you call a problem is simply a configuration feature that naturally follows from the colossal excess of natural resources. The West deprived Russia of luxuries with sanctions, not thinking that Russia could deprive the West of basic necessities in response. Therefore, it is not necessary to wishful thinking, the West would like to get rid of Russian oil and gas, but so far it is not very successful.

[DrBeer]

So what happened that the "greatest economy" suddenly ran out of dollars?

They were frozen and some article says its over 100 billion USD combined with total of 640bn reserves frozen due to these sanctions so they can't really pay in USD now and if there is a way probably in gold?

Well, western countries are in need of rubles right now this can be the game changer because the Russia's announcement that unfriendly countries can only buy their oil with ruble means USD actually becomes worthless in Russia,this ain't affected the USD value but it just showed that USD may fall and lose its reserve currency status if they lose more countries relationships and start imposing sanctions.

No, the situation does not look like this. It is not entirely clear to me why or why you are presenting information either "twisted" or taken out of context. Let me explain - no matter how Russia boasts of its exaggerated greatness, the sanctions themselves hurt the financial sector. Yes, a significant part of the assets, including banking ones, were blocked, and here, indeed, Russia no longer manages them. And yes, disconnecting from SWIFT introduced a lot of restrictions. BUT. It is for oil / gas / coal settlements that accounts are not blocked and hotel banks were not even introduced under sanctions just so as not to violate these mutual settlements.
Regarding rubles and normal currencies: Russia still has gold and foreign exchange reserves, which are under the control of Russia. But as you understand, this is the money that Putin and his accomplices want to keep for themselves. Who needs rubles - no one! And dollars, euros and gold are a chance for a carefree old age
Therefore, the game of the "world ruler" began, who, as he says so, everyone will start doing it - we transfer all payments for gas and oil only in rubles, otherwise we will turn off everyone. But of course, everyone relied on these tricks of the crazy "great ruler". Therefore, Russia tried to make such a move - here they say you have rubles for our debts. But ... that's the difference - the West is used to working within the framework of agreements and laws, Russia - to take such illegal steps. And the contracts clearly spell out how payments on these debts should be made, and the form of calculation and terms and conditions. Conditions not met (form of payment) - I'm sorry, you're a dummy and a loser....

[electronicash]

Russia's problem is that it is not a high-tech state. Its economic power rested on energy resources, which it simply extracted from its bowels. As soon as the international community took a number of measures, including the refusal to supply Russian oil, gas and coal, Russia "deflated".

Russia's problems are fools and roads. What you call a problem is simply a configuration feature that naturally follows from the colossal excess of natural resources. The West deprived Russia of luxuries with sanctions, not thinking that Russia could deprive the West of basic necessities in response. Therefore, it is not necessary to wishful thinking, the West would like to get rid of Russian oil and gas, but so far it is not very successful.

not only that. Russia's sanctions affected everyone including the Asian countries like mine. we are not even part of this war.

the central banks all around the world were anxious when Russia's reserves were frozen. its not normal, reserves are not supposed to be frozen no matter how antagonist the country is. Putin is a pain in the ass we all know that but with frozen reserves, it's like giving Putin the reason to respond like shit.

[NeuroticFish]

Putin is a pain in the ass we all know that but with frozen reserves, it's like giving Putin the reason to respond like shit.

Putin "response" is not related to frozen reserves. Putin doesn't need reasons for "shitty response", he can fabricate them himself.
Thinking different means big flaw in one's logic. Just ask yourself: what was first, his attack or the sanctions? And if so, what was the reason for his shitty attack?!

[be.open]

Putin "response" is not related to frozen reserves. Putin doesn't need reasons for "shitty response", he can fabricate them himself.
Thinking different means big flaw in one's logic. Just ask yourself: what was first, his attack or the sanctions? And if so, what was the reason for his shitty attack?!

Do not be fooled, if you look at the essence of things, or at least a little deeper than the surface, then at least 80% of the responsibility for the armed conflict between Russia and Ukraine lies with the United States. The United States is the main beneficiary of this conflict, it weakens Russia in one fell swoop, shifts the attention of Americans from internal problems to external ones and, with the imposed sanctions policy, actually destroys a strong competitor in the face of the European Union. In Ukraine, the puppet government after the coup on the Maidan, and deliberately cultivate anti-Russian sentiment in Ukraine, the United States began back in 2004 with the coming to power of Yushchenko. A similar US policy is being pursued in Taiwan towards China.

[Smartprofit]

Russia was quite a technological country. 

The oil and gas industry is a very technologically advanced industry.  Nuclear power is an even more technologically advanced industry.  Russia also had a space industry (technical developments from the times of the USSR), metallurgy, agriculture and fertilizer production. 

Also in Russia there is a very good technical education (including many good specialists in the field of informatics and computer technology). 

Yes, this was not enough for such a vast territory, but nevertheless, this is a good potential for further development. 

What happened now is a disaster. 

This is the destruction of everything that was created with great difficulty by generations of Russian and Soviet people.  Managerial incompetence led to disaster. 

The extent of this catastrophe has yet to be realized.

[DrBeer]

Putin "response" is not related to frozen reserves. Putin doesn't need reasons for "shitty response", he can fabricate them himself.
Thinking different means big flaw in one's logic. Just ask yourself: what was first, his attack or the sanctions? And if so, what was the reason for his shitty attack?!

Do not be fooled, if you look at the essence of things, or at least a little deeper than the surface, then at least 80% of the responsibility for the armed conflict between Russia and Ukraine lies with the United States. The United States is the main beneficiary of this conflict, it weakens Russia in one fell swoop, shifts the attention of Americans from internal problems to external ones and, with the imposed sanctions policy, actually destroys a strong competitor in the face of the European Union. In Ukraine, the puppet government after the coup on the Maidan, and deliberately cultivate anti-Russian sentiment in Ukraine, the United States began back in 2004 with the coming to power of Yushchenko. A similar US policy is being pursued in Taiwan towards China.

Let's go even further, shall we? year 2000. I am on business in Donetsk. By the way, in this city at that time 30-40% spoke Ukrainian. And in the evening, in one of the establishments, I observe a picture - 10-12 people are sitting at the table, actively gesticulating, raising toasts very loudly and not very culturally. And there is a flag on the wall. At first I thought that this was a flag of something like the Yuzovsky Manufactory or something similar (John Yuz is, in fact, the "father" of Donetsk and the Donetsk region, their founder, a British).
It turned out not. It turned out that this is the flag ... of the Donetsk People's Republic! Yes, yes, yes - it was 2000, 4 years before "the anti-Russian pumping began." I decided to clarify, and it turned out that since the 1990s, in the east of Ukraine, the anti-Ukrainian movement "DPR" and several others, united by the idea of ​​"Novorossiya", have been actively gaining strength, with the support of curators from ... no, not the United States, but Russia, those. anti-Ukrainian, anti-state, separatist concept. Would you like to read their documentation, goals, etc.? I highly recommend it - it's a mix of Nazism, nationalism, chauvinism. And now you tell us about "the United States began purposefully cultivating anti-Russian sentiments in Ukraine back in 2004 with Yushchenko coming to power," specific actions, laws, and other facts? Looking forward to your stories about Yushchenko, the US and anti-Russian sentiment

[el kaka22]

I wouldn't really be shocked about this. If you tell a nation that you do not want to work with them anymore, then they can just deny to pay your debts back as well of course. There is nothing shocking about this at all. The scary deal is, Germany started the second world war period by declaring not to pay their debts from the first world war as well. "The stress put into German people because of the war reparations was too high" is a common thing to make it sound like it made a sense, when in fact if you attack a nation and destroy them, of course you will pay a ton of money, that is normal expectations.

Russia will be asked the same, I guarantee you, it is not just enough to stop the war, they also have to pay a lot to fix Ukraine as well.

[be.open]

Let's go even further, shall we? year 2000. I am on business in Donetsk. By the way, in this city at that time 30-40% spoke Ukrainian. And in the evening, in one of the establishments, I observe a picture - 10-12 people are sitting at the table, actively gesticulating, raising toasts very loudly and not very culturally. And there is a flag on the wall. At first I thought that this was a flag of something like the Yuzovsky Manufactory or something similar (John Yuz is, in fact, the "father" of Donetsk and the Donetsk region, their founder, a British).
It turned out not. It turned out that this is the flag ... of the Donetsk People's Republic! Yes, yes, yes - it was 2000, 4 years before "the anti-Russian pumping began." I decided to clarify, and it turned out that since the 1990s, in the east of Ukraine, the anti-Ukrainian movement "DPR" and several others, united by the idea of ​​"Novorossiya", have been actively gaining strength, with the support of curators from ... no, not the United States, but Russia, those. anti-Ukrainian, anti-state, separatist concept. Would you like to read their documentation, goals, etc.? I highly recommend it - it's a mix of Nazism, nationalism, chauvinism. And now you tell us about "the United States began purposefully cultivating anti-Russian sentiments in Ukraine back in 2004 with Yushchenko coming to power," specific actions, laws, and other facts? Looking forward to your stories about Yushchenko, the US and anti-Russian sentiment

Do not pull the owl on the globe. Donbass has always been and felt itself not just Russian-speaking, but Russian - and from the point of view of Western Ukraine, they were second-class people. But they lived quite calmly as part of Ukraine and dug their own coal, honestly earning their living, until the Ukrainian authorities forbade them to speak Russian, their native language. This was a trigger and a match in the fire of separatist sentiments. You can't blame people for wanting to speak and think in their native language.

[DrBeer]

Russia was quite a technological country. 

The oil and gas industry is a very technologically advanced industry.  Nuclear power is an even more technologically advanced industry.  Russia also had a space industry (technical developments from the times of the USSR), metallurgy, agriculture and fertilizer production. 

Also in Russia there is a very good technical education (including many good specialists in the field of informatics and computer technology). 

Yes, this was not enough for such a vast territory, but nevertheless, this is a good potential for further development. 

What happened now is a disaster. 

This is the destruction of everything that was created with great difficulty by generations of Russian and Soviet people.  Managerial incompetence led to disaster. 

The extent of this catastrophe has yet to be realized.

You write incredibly funny things!
1. The oil and gas industry - the basic infrastructure was built by the USSR, there is not the slightest merit of Russia in this. In fact, all new field developments, except for the simplest and most affordable (with a minimum drilling depth) are based on Western technologies! That is why sanctions prohibit the supply of such technologies
2. Nuclear power - just the same. Base - Development of the USSR. Since then there is NOTHING CONCEPTUALLY NEW! Or give an example of technologies developed and industrially implemented, fully developed in Russia!
3. Space industry. Now she is the Comic Industry. Trampolines, bullying, fools' show. The space industry, which more or less worked, is a legacy of the USSR. I will be brief - you will not be able to give a single example of NEW and fully developed space technologies in Russia. Moreover - after the first sanctions. The Russian comic industry began to crumble like a house of cards in the wind - because everything is built on the elemental base of sealed companies. The import substitution program has failed. Or you have other information ?
4. Agriculture - do you know that Russia is the leader in the purchase of palm oil? Are you aware that most of the bread in Russia is feed grain? Do you know that Russia imports most of the vegetables and fruits? The only thing there is grain, which is almost completely exported, but that's all - varieties of Western companies

In total, Russia is such a large formation in terms of a useless area that remained technologically in the middle of the 20th century, and did nothing to change this situation.

[NeuroticFish]

Putin "response" is not related to frozen reserves. Putin doesn't need reasons for "shitty response", he can fabricate them himself.
Thinking different means big flaw in one's logic. Just ask yourself: what was first, his attack or the sanctions? And if so, what was the reason for his shitty attack?!

Do not be fooled, if you look at the essence of things, or at least a little deeper than the surface, then at least 80% of the responsibility for the armed conflict between Russia and Ukraine lies with the United States. The United States is the main beneficiary of this conflict, it weakens Russia in one fell swoop, shifts the attention of Americans from internal problems to external ones and, with the imposed sanctions policy, actually destroys a strong competitor in the face of the European Union. In Ukraine, the puppet government after the coup on the Maidan, and deliberately cultivate anti-Russian sentiment in Ukraine, the United States began back in 2004 with the coming to power of Yushchenko. A similar US policy is being pursued in Taiwan towards China.

You either got fooled, either want to fool us: nobody but Putin is responsible for starting this stupid war, killing civilians and destroying goods.
It doesn't matter what is the sentiment in Ukraine. It's not Russia's business.
And yeah, I am sure now Ukrainians will just love Putin and the Russians for killing and raping them. What alternate reality are you living in?!!?!

[dr.hopkins]

Another fake, which only naive fools will fall for. Learn to verify information.

[alexeyneu]

it's not Russia but some company just bragging about that they offered to be paid in roubles, they denied and so now thinking it's a default, not more