Russia to make dollar bond payments in roubles after US blockade

Financial Times/Tommy Stubbington and Polina Ivanova/4-6/.2022

“Russia moved one step closer to a potential default on its foreign currency debt on Wednesday after the country’s finance ministry said it was forced to make payments to holders of its dollar-denominated bonds in roubles.”

USAGOLD note: Making payment in roubles it can simply print amounts to a major advantage for Russia, and, according to Wall Street sources, translates to a default that could end up in court. How such a default might reverberate across credit markets is yet to be determined, but it looks like we are going to find out.