Monday, July 4, 2022
Google search engine
HomeWorldMoscow threatens to sue S&P 

Moscow threatens to sue S&P 

WE NEED FUNDS TO FIGHT MAINSTREAM MEDIA MISINFORMATION

We are 100% independently owned, free from corporate ownership and control. Help support a free press by donating to us.

Credit rating S&P Global has declared that Russia has defaulted on its foreign debt after Moscow refused to make bondholder payments in any currency than Rubles. The announcement has caused outrage in the Kremlin with Finance Minister Anton Siluanov stating Russia would start legal proceedings if it was declared in default by the West.

Last week Russia paid some of its $650 million U.S. foreign debt in Rubles, due to increased sanctions they were unable to process payments in foreign currency. At this stage, it appears that it would be difficult for investors to convert the Rubles into the equivalent U.S. dollar value which Russia was obliged to pay. Currently, Russia has a 30 day grace period to make the payments in accepted currencies or it will be considered officially in default.

S&P stated that “we think sanctions on Russia are likely to be further increased in the coming weeks, hampering Russia’s willingness and technical abilities to honour the terms and conditions of its obligations to foreign debt-holders.”

Russia has responded to S&P’s declaration, threatening legal action will be taken.

In an interview with Izvestia newspaper, Mr Siluanov voiced his frustration with the situation, saying “we will go to court because we have taken all the necessary measure to ensure that investors receive their payments.”

Going on to say “we will present to the court our invoices confirming our efforts to pay both in foreign currency and in rubles,” without specifying which legal body Moscow would utilise.

On Saturday, credit rating agency S&P said Russia had now entered into “selective default” due to the Kremlin repaying dollar-denominated bonds that matured last week in Rubles. This classification only affects Moscow’s payments in foreign currencies, ratings for its Ruble payments remain unchanged.

Mr Siluanov stated “Russia has tried in good faith to repay external creditors by transferring the corresponding amounts in foreign currency to pay our debt. Nevertheless, the deliberate policy of Western countries is to artificially create a default by all possible means.” Adding “if an economic and financial war is waged against our country, we are obliged to react, but while fulfilling our obligations.”

Up until now Russia has avoided defaulting, as the U.S. Treasury allowed them to use foreign currency held by Moscow overseas to settle foreign debts. Russia was barred from making debt payments using funds held by American banks last week, essentially strangling them economically.

Over the last month, Russia’s economy took a nosedive due to increased international sanctions imposed on them, following the invasion of Ukraine. It is also expected that Russia’s GDP will shrink by 15% this year.

Deputy Chief of the Institute of International Finance Elina yearbook stated that there’s been an “unprecedented shock to the Russian economy.” Russia has not had a recession of this size since the 1990s.”

The Ruble has mainly recovered since, however U.S. Secretary of State Antony Blinken has said it is mainly due to “manipulation” by Russian authorities, claiming the comeback is not sustainable.

Mr. Blinken released a statement on NBC’s Meet the Press, “people are being prevented from unloading rubles.” “That’s artificially propping up the value. That’s not sustainable. So I think you’re going to see that change.”

To counteract some of the severe sanctions imposed by the West, Russia’s central bank imposed strict capital controls.

One U.S. dollar was equivalent to 84.75 Rubles this morning, which is practically the same exchange rate when the war in Ukraine began.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments

Ivan M. Paton on Approval Of Remdesivir
Beth on Free and Fair?
Novus Ordo Seclorum on Victorian Change to Mandates
Novus Ordo Seclorum on Health care in crisis
Novus Ordo Seclorum on Health care in crisis
Burnthehousedown on Postal vote outrage
Shanthini Balasuriyar on Queensland CHO – a law unto himself
Billie Hutton on Convoy to Canberra Two
Lynn a freedom warrior on Convoy to Canberra Two
Elizabeth on Ruble on the rise
Yvonne Ford on Pfizer drug recall
Gene Trevor Wyngaard on NZ Scrap vaccine mandates
Frances Mahy on Russia Sanctions The U.S.A
Peter Coxhead on My Story, So Far
Theodora Zajaz on Novak Out Of U.S. Open.
Leonie Young on Probuild Buy-Out
Shelley Madden on Pfizer, Stranger than Fiction
Debra Mullins on AVN vs Brendan Murphy
Malcolm on The End Game
Sabina on What’s Next?
Drew Duncan on Belarus Under Threat
Robyn on What’s Next?
Sofia Rutteman on Here We Go Again, Part 2
Robert Burns on Ricardo Bosi Public Address
Kim Henry on Pfizer Whistleblower
Lee Y on Give Me Five
Linda Nemeth on Ricardo Bosi Public Address
Warwick Hibble on Ricardo Bosi Public Address
Lesley on The Data Is Ours
Patricia Poppeliers on Here We Go Again, Part 2
Dani Stevens on Trouble in Paradise
Colin Stevens on VICTORY FOR THE PEOPLE
Leanne Robyn on VICTORY FOR THE PEOPLE
Dianedraytonbuckland on Facebook: Judge, Jury and Executioner
Michael Chere on Before You Inject Your Child
Kerry Taylor on Which one of us is blind?
Kathy Hirsch on First Nations Locked Down
Gloria Feather on Undermining The Indigenous.
Marie Millikin on Let us talk about intuition.
Lucienne Helm on Let us talk about intuition.
Susan Wilson on The real revolution
Jennifer Leonard on 2020 a year to forget
F J on Strange Times
Tracey Parsons on IBAC DAY 9
stacie rose on Which one of us is blind?
Uncertainty on My Story, So Far
Tracey on A Veteran’s Plea
Zaidee Lens Van Rijn on My Story, So Far
Alissandra Moon on The Rise of Medical Apartheid
Peggy Gothe on Mum, I don’t feel well
Keith Cashman on Mum, I don’t feel well
Melinda c Taylor on Mum, I don’t feel well
Vaughan Oke on Which one of us is blind?
Jane Ramsay on Choice vs Ultimatum
Brian K Wilson on Which one of us is blind?
Scott Dawson on Which one of us is blind?
Sandra Dee on ST KILDA STREET PICNIC