The cost of Russia's invasion of Ukraine will become a lot clearer this week, with a previously unthinkable sovereign default looming, more emergency central bank measures likely and a stock market crash guaranteed if it reopens.
Moscow's "special operation" in its former Soviet neighbour has cut Russia off from key parts of the global financial markets by the West, triggering its worst economic crisis since the 1991 fall of the Soviet Union.
Wednesday could mark another low. The government is due to pay $117 million on two of its dollar-denominated bonds. But it has been signalling it will not, or if its does it will be in roubles, tantamount to a default.
Technically it has a 30-day grace period, but that is a minor point. If it happens it would represent its first international default since the Bolshevik revolution over a century ago.
(Excerpt) Read more at
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The West especially the USA is engaged in economic war with Russia, removing them from Swift, sanctioning their Central Bank, and banning their oil.
Most of the debt Russia has is owned by the West, what better way to say FU to the West by Russia and default on their debts.
The next question is what would Russia do then ?? China is a fountain of money and wants to screw the West as much as Russia.
If I were Russia I would refuse to pay the debts and default and see what happens to Western Banks and other investment companies who have issued large amounts of Credit Default Swaps that could cause the crisis of 2008 to be considered a skirmish.
Moscow's "special operation" in its former Soviet neighbour has cut Russia off from key parts of the global financial markets by the West, triggering its worst economic crisis since the 1991 fall of the Soviet Union.
Wednesday could mark another low. The government is due to pay $117 million on two of its dollar-denominated bonds. But it has been signalling it will not, or if its does it will be in roubles, tantamount to a default.
Technically it has a 30-day grace period, but that is a minor point. If it happens it would represent its first international default since the Bolshevik revolution over a century ago.
(Excerpt) Read more at
----------
The West especially the USA is engaged in economic war with Russia, removing them from Swift, sanctioning their Central Bank, and banning their oil.
Most of the debt Russia has is owned by the West, what better way to say FU to the West by Russia and default on their debts.
The next question is what would Russia do then ?? China is a fountain of money and wants to screw the West as much as Russia.
If I were Russia I would refuse to pay the debts and default and see what happens to Western Banks and other investment companies who have issued large amounts of Credit Default Swaps that could cause the crisis of 2008 to be considered a skirmish.
