“On 27 June, holders of Russia’s sovereign debt had not received coupon payments on two eurobonds worth $100 million by the time the 30-calendar-day grace period expired, which we consider an event of default under our definition.”
MOODY’S RATINGS AGENCY
Several businesses have pulled out of Russia, with the Michelin tyre group being the latest to withdraw. The company says it will give up business by the end of this year.
Moscow believes there are “no grounds to call this situation a default”. Officials maintain the payments did not reach creditors because of “third parties”.
The nation says it has the money to pay its debts but has blamed Western sanctions for freezing its foreign currency reserves, which are held abroad.
Russian authorities have described the situation as a “farce” and accused the West of pushing an “artificial” default.
