Russia defaults on debt for the first time since 1998

MOSCOW – Russia has failed to pay foreign debt for the first time since 1998. It came after the country missed a Sunday deadline to make $100 million in interest payments.

Russia does have the money and is willing to pay its debts, but sanctions make payments to international creditors impossible.

The Kremlin has determined to avoid default [gagal bayar utang] the first since 1998, and a huge blow to the nation’s prestige.

Russian Finance Minister Anton Siluanov called this situation a “joke”.

Russia appears to be on an inescapable path to default since sanctions were first imposed by the United States (US) and the European Union after the invasion of Ukraine.

The sanctions limit Russia’s access to the international banking network that will process payments from Russia to investors around the world.

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The Russian government has said it wants to make all payments on time, and claims it has so far been successful.

About $40 billion of Russia’s debt is denominated in dollars or euros, with about half held abroad.

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