[Asia Economy Reporter Kim Bo-kyung] Russia has defaulted on its foreign currency-denominated sovereign bonds, but the Kremlin has rejected the default declaration, saying there is "no basis" for it.
According to major foreign media on the 27th (local time), Dmitry Peskov, Kremlin spokesperson, told reporters, "There is no basis to call this situation a default," adding, "Claims related to default are completely wrong."
He stated that Russia paid interest on bonds maturing in May, and regarding the fact that individual investors did not receive interest payments due to Western sanctions, he said, "That is not our problem."
This refers to the situation where Russia fulfilled its repayment obligations by sending interest payments in dollars and euros to Euroclear, an international central securities depository, but individual investors did not receive the payments due to Western sanctions.
Until the previous day, Russia failed to pay $100 million (approximately 130 billion KRW) in interest on foreign currency sovereign bonds to investors. The original maturity date was the 27th of last month, but a 30-day grace period was set, and the default was officially established on this day. This is Russia's first default in over 100 years since the Bolshevik Revolution.
Meanwhile, the Group of Seven (G7) is expected to announce measures banning imports of Russian gold at the summit being held in Germany. Spokesperson Peskov appeared relaxed about these additional sanctions, suggesting that the market would simply shift.
He was quoted by Sputnik News as saying, "If one market loses its appeal due to illegal decisions, these goods will turn towards places with higher demand, more convenience, and more legitimate economic systems."
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