Kremlin reacts on the default matter, claims 'Russia has money and is willing to pay'

As there are speculations that Russia might be in default, the Kremlin has reacted to the situation by stating that there are no objectives for putting the Russian Federation in default as it has money and is willing to pay. On Monday, the President of the Russian Federation's press secretary, Dmitry Peskov said that they have long held the opinion that there can be no objective justifications for a default. He claimed that there is money and there is a readiness to pay it, whether in rubles or according to a scheme that may be more convenient for paper holders.

When asked whether holders of Russian Eurobonds are willing to agree to coupon payments under a scheme similar to payments for gas in rubles, or if they would prefer to default on the Russian Federation, the Kremlin spokesperson stated that the Ministry of Finance and the relevant departments will carry out contacts and that these contacts will determine everything, according to TASS.

Moscow intends to settle accounts with holders of Russian Eurobonds

Russian Finance Minister Anton Siluanov previously informed the Vedomosti newspaper that Moscow intends to settle accounts with holders of Russian Eurobonds with a method similar to the Russian ruble-based gas payment scheme. He said that foreign investors will need to open currency and ruble accounts with a Russian bank. 

Prior to this, Siluanov stated that Moscow is preparing a mechanism for the June payment of its external debt, which will allow payments in rubles and that the Russian Federation will maintain its image as a reliable borrower despite Western restrictions on the payment of the Russian Federation's state debt. The finance minister also stated that this system would allow payments to be made without using the Western settlement infrastructure.

The White House predicted that Russia will default on its foreign obligations

Earlier, the White House predicted that Russia will default on its foreign obligations, demonstrating the country's "pariah" status, with a crucial $100 million test coming up on Friday. Russia has two bond coupon payments due in dollars and euros but the money's fate is uncertain after the US Treasury eliminated a critical loophole last week that allowed cash to bypass sanctions and enter investors' accounts.

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