Russia’s debt default will be one of the hardest in history to resolve and could see the US seize the central bank’s assets, economist says

Russia’s debt default will be one of the hardest in history to resolve and could see the US seize the central bank’s assets, economist says

The impending Russian debt default is likely to be one of the most difficult in history to resolve, and could even lead the US to permanently seize assets from the country's central bank, according to a report from the consultancy Oxford Economics. Russia is facing its first default on its foreign-currency debt since the aftermath of the Bolshevik revolution in 1918. The US Treasury earlier this month from paying $650 million due on two bonds using funds held at American banks. Russia has instead in rubles, but credit ratings agencies have said this would constitute a default. Russia has a 30-day grace period from April 4 in which to pay in dollars. But thoughts are now turning to the next steps, and how bondholders might recoup their money. Tatiana Orlova, lead emerging markets economist at Oxford Economics, said investors face a "very long and difficult" legal road. "Russia's debt crisis will be among the most difficult in history to resolve, since the default has its roots in politics rather than finance," she wrote in a report that was sent to clients Thursday. One of the key problems is that political and financial relations between Russia and the West have completely