For the first time since the year after the 1917 revolution, Russia is unable to pay its debts abroad. Russia claims that it wants and can pay – but that the sanctions make it impossible. It is a scorching loss of prestige for Vladimir Putin and for Russia when, for the first time since 1918, the country is unable to pay interest on the country’s foreign debt in time. On Sunday night, the deadline expired – and Russia missed bond payments of 100 million dollars. Russia now ends up in default, a label on states or companies that are bankrupt. Russia is already struggling with double-digit inflation and the worst economic downturn in many years. More about the reasons for the non-payment in the clip above.
t4-general
Russia bankrupt – unable to pay foreign debts
