For the first time in its 103-year history, Russia failed to pay off its foreign debts

- Russia claims that Western countries have tried to force themselves into defaulters

New delhi date. Monday, June 27, 2022

For the first time in its 103-year history, Russia has declared a foreign debt default. The incident is a testament to the impact the war with Ukraine has had on the Russian economy over the past four months.

Following the war with Ukraine, all Western countries, including the United States, have banned trade with Russia. Russia has said it will use its local currency, the ruble, after a ban on dollar transactions in global markets, but other countries, under US influence, have refused.

Russia was due to pay 10 100 million in interest on foreign debt on May 27, with a one-month grace period. That time ended on Sunday, June 26th. Thus Russia technically defaulted on the loan, the first such incident since 1918.

Russia's bond market, which has endured all sorts of sanctions since the war, has been under pressure since March and its central bank's foreign exchange reserves have also stagnated. What is even more challenging for Russia, experts say, is that its inflation rate has doubled and the economy is weakening.

Claim forcibly defaulted

This default has been faked by Russia. Russia says it has enough funds to pay any bills but is being forced to default.

Russia said last week that it wants to pay સરકારી 40 billion in government debt in rubles because Western countries have banned trading in dollars. Russia says Western nations have tried to force it into default. It is a very bad situation when one government is trying to make another government a defaulter.