Russia may be in default after rouble payment

Russia may be in default after rouble payment

A key credit ratings agency said Russia may be in default after it tried to pay debt in roubles. Moscow made a payment due on April 4 on two government bonds maturing in 2022 and 2042 in its own currency rather than the US dollars stipulated by the terms of the securities. Moody's said that Russia "therefore may be considered a default under Moody's definition if not cured by 4 May, which is the end of the grace period. The bond contracts have no provision for repayment in any other currency other than dollars." Moody's said that while some Russian eurobonds issued after 2018 allow payments in roubles under some conditions, those issued before 2018 - such as those maturing in 2022 and 2042 - do not. "Moody's view is that investors did not obtain the foreign-currency contractual promise on the payment due date." If Moscow is declared in default , it would mark Russia's first major default on foreign bonds since the years following the 1917 Bolshevik revolution, although the Kremlin says the West is forcing a default by imposing crippling sanctions. The Russian finance ministry did not respond to a request for comment. The finance minister, Anton Siluanov,