Finland and Sweden Leaders to Meet Biden on 19th
US Moves to Block Russia Bond Principal and Interest Payments... Aiming for Default
Russian State Media Also Pessimistic About War Situation... "The Whole World Is Against Us"
Swedish Prime Minister Magdalena Andersson (right) attended a joint press conference in Stockholm on the 17th (local time) with Finnish President Sauli Niinist?, who was on an official visit to Sweden. Prime Minister Andersson announced that the two countries would jointly submit their NATO membership applications on the 18th. Stockholm, Sweden ? Photo by Xinhua and Yonhap News Agency
[Asia Economy Reporter Hyunwoo Lee] Following the decision by the leaders of Finland and Sweden to sign and jointly submit their applications for membership in the North Atlantic Treaty Organization (NATO), they also announced plans to visit the United States together to meet with President Joe Biden. The U.S. government is pursuing measures to block Russia's sovereign debt repayments, aiming to induce a default.
According to the Associated Press on the 17th (local time), Finnish President Sauli Niinist? and Swedish Prime Minister Magdalena Andersson signed the NATO membership application on the same day. Both countries plan to jointly submit the application to NATO on the 18th. At a joint press conference following the signing ceremony, President Niinist? and Prime Minister Andersson stated, "We have chosen the same path and are pleased to be able to do this together."
Prior to signing the NATO membership application, the Finnish Parliament officially approved the application after a 14-hour debate, with 188 out of 200 seats voting in favor of joining NATO. Unlike Finland, Sweden did not require parliamentary ratification and the government decided to apply for membership.
Additionally, the two leaders plan to visit the White House together on the 19th to meet with President Biden. White House spokesperson Jean-Pierre said at a press briefing that "the leaders of Finland and Sweden will discuss NATO membership issues with President Biden," adding, "We know there is strong support for their NATO membership, and we are confident that the two countries will reach an agreement with Turkey regarding their accession."
President Biden’s direct meeting with the leaders of Finland and Sweden is interpreted as a move to support their NATO membership and to mediate conflicts with Turkey, which opposes their accession. Currently, most NATO member countries support their membership, but Turkey continues to oppose it. The Turkish government insists that both countries must stop supporting the Kurdistan Workers' Party (PKK), a Kurdish militant group with which Turkey is in conflict.
Meanwhile, the U.S. government is also reportedly planning to block Russia’s ability to repay its debts, thereby triggering a default to increase economic pressure. Bloomberg News, citing a senior official, reported that "options to completely block Russia’s principal and interest payments on dollar-denominated bonds are under review," and that "all options to increase pressure on Russian President Vladimir Putin are being considered."
Previously, the U.S. Treasury Department had banned all transactions between U.S. financial institutions and the Russian Central Bank and Ministry of Finance as part of sanctions against Russia, but allowed an exception until the 25th of this month so that existing Russian bondholders could receive principal and interest payments. So far, Russia has avoided default due to this exception. On the 30th of last month, Russia paid $650 million (approximately 825.8 billion KRW) in interest on dollar-denominated bonds maturing in 2022 and 2024, thereby avoiding default.
Russia, stuck in a stalemate in the Donbas region of Ukraine, is facing worsening internal public opinion, with even pro-government media unusually pointing out unfavorable developments on the battlefield. There are also indications that media control is reaching its limits amid intensified Western economic sanctions.
According to the British newspaper The Times, on the previous day, Mikhail Khodaryonok, a well-known Russian military expert and former colonel, appeared on a talk show on the pro-government state channel Rossiya 1 TV and said, "To be honest, the situation is becoming more unfavorable for us, and in fact, the whole world is against us," criticizing the Russian government by adding, "We need to have a realistic sense militarily and politically, and shaking rockets toward Finland is just laughable."
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