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Russian default: technical, real or symbolic?

Default in Russia is real

.The 30-day grace period introduced at the end of May to pay Vladimir Putin's creditors did not help much. Yesterday, Sunday, June 26, the deadline expired and they did not receive the payment, which means that "technically" this situation is considered a default.

However, the suspension of payments at the moment, according to Bloomberg, is "symbolic" in nature. In fact, three rating agencies, Moody's, S&P and Fitch, have not announced Russia's default, as all three have suspended their activities and analysis of the country and its companies since March, when the European Union banned these activities in the Kremlin.

Payments in rubles after Putin's decree
In addition, the Russian Ministry of Finance announced last Thursday that it had fully fulfilled its obligations to service the state debt of the Russian Federation. Russia reported that it had paid 12.51 billion rubles, or $234.9 million, to the National Settlement Depository (NSD), which acts as a payment agent for Eurobonds.

The payment in rubles was made in accordance with the decree of Russian President Vladimir Putin, according to which "bonds related to Eurobonds of the Russian Federation are recognized as executed if they are executed in rubles for an amount equal to the value of foreign currency bonds."



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