In Russia, for the first time since 1918, there was a default on foreign debt

Russia has defaulted on its sovereign foreign currency debt for the first time since the last century, culminating in tougher Western sanctions that have blocked payments to foreign creditors.

This was reported by Bloomberg.

For months, the country has been finding ways to circumvent the penalties imposed after the invasion of Ukraine. But at the end of the day on Sunday, June 26, the grace period for the payment of interest of $ 100 million expired until May 27, which is considered a default in case of non-payment.

"It’s a grim marker in the country’s rapid transformation into an economic, financial and political outcast. The nation’s eurobonds have traded at distressed levels since the start of March, the central bank’s foreign reserves remain frozen, and the biggest banks are severed from the global financial system," the newspaper writes.

Russia itself refuses to accept the default and says it has the funds to cover any bills. Last week, she announced that she would move to service her outstanding sovereign debt of $ 40 billion in rubles, criticizing the "force majeure" situation that she said was artificially created by the West.