Russia Says It Made Debt Payments to Avoid Default

    Image copyright: Reuters

    The Facts

    • Russia's Finance Ministry claimed on Thurs. that it made $117M in interest payments on two dollar-denominated eurobonds, possibly avoiding default.

    • According to Reuters, JPMorgan had received the payment and made a credit to Citibank, the paying agent.

    The Spin

    Anti-Russia narrative

    Sanctions are the only way to increase pressure on Putin's regime and bring him to the negotiating table to end the crisis in Ukraine. Although this may produce ripple effects in global markets, the world can withstand these ripples.

    Pro-Russia narrative

    The sanctions are nothing more than an attempt to artificially force Russia to default on its loans. Any potential default does not reflect the reality of Russia's strong economic position. Russia can withstand the sanctions and still maintain significant potential for further development.

    Cynical narrative

    Russia would not be able to withstand the punishing sanctions without the support of China, which is using the conflict in Ukraine as a proxy battle in its fight to undermine the US Dollar as the global reserve currency.

    Establishment-critical narrative

    It's hypocritical to impose sanctions on Russia for invading Ukraine, but not on the US for invading Iraq for equally unjustified reasons, or on Israel for invading and annexing Arab lands.

    Sign up to our daily newsletter