Russia is poised for a bond default that could unleash years of courtroom chaos. A debt expert breaks down what happens next.

Markets Insider/Harry Robertson/4-9-2022

grpahic illustration of powder kets with fuse lit“Russia has come closer to a default on its foreign-currency bonds than at any time since 1918, after the U.S. Treasury banned the government from making dollar payments using American banks.”

USAGOLD note: University of Virginia’s Mitu Gulati, a law professor, offers insights on the legal ramifications of Russia’s quasi debt default. He points out that many Americans own Russian debt through pension funds that bought the debt from BlackRock and Pimco. A.P. reports that Standard & Poor’s downgraded Russian debt late last week to “selective default.” Because the U.S. Treasury Department banned Russia from making dollar payments through U.S. banks, Russia paid in roubles – technically putting it in default.

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