Invasion: end of February, 2022.
May, 2022: sanctions have barely had time to impact Russia and here we have an update of Russia's destiny with default, link here:
Vladimir Putin has been forced to raid Russia’s dollar reserves to pay creditors in a U-turn that has staved off the country’s first international default since the Bolshevik revolution.
Investors started to receive $650m of late payments on two bonds on Tuesday as part of a last-gasp bid to avoid a formal default before a deadline elapsed on Wednesday.
The interest payments on the bonds have faced intense scrutiny since the Kremlin missed them in early April after the money was caught up in Western sanctions.
Those dollars would be desperately needed to buy "stuff" to keep rigs operating in the oil fields, assuming Russia can even buy western goods. Probably not. But "spending" dollars to meet bond debts suggests how bad things are in Russia.
The bigger risk: no dollars? Not being able to buy wheat if there's a "food crisis."
No comments:
Post a Comment