Russia defaults on foreign debt payments for the first time in 103-year history

- The war against Ukraine dealt a severe financial blow to Russia

- Western trade, including US, imposes sanctions on Russia, halts foreign trade

Moscow: Russia is also suffering huge losses due to the war against Ukraine. Russia's economy is also being hit. According to a report, Russia has defaulted on foreign debt for the first time in its 108-year history.

All Western countries, including the United States, have banned trade with Russia following the ongoing war with Ukraine. Russia offered to pay in its local currency, the ruble, after banning dollar transactions with Russia in the global market, which was rejected by other US-led countries.

On May 9, Russia was to pay ૧૦ 100 million in interest on foreign debt. An additional one month grace period was granted on the date of repayment of these debts. This period also ended on Sunday, June 3, and technically Russia defaulted on the loan, the first case since 1918.

Russia's global trade has almost come to a standstill due to sanctions imposed by the United States, Europe and the West. Due to the war and other reasons, the current inflation rate in Russia has reached double digits and the tide of recession in the economy has turned again. Russia's bond market, which has faced all post-war sanctions, has been under pressure since March, while the central bank's foreign exchange reserves have been declining.

Russia's argument - 'this is a fake default'

Calling the default a fake, Russia said it had enough funds to pay any bills but was being forcibly defaulted. Russia said last week that it wanted to pay સરકારી 30 billion in government debt in rubles as Western countries banned trade in dollars. Western countries have tried to make us defaulters by force.