The international rating agency Moody’s reports that Russia has made payments on dollar bonds in rubles, which does not meet the conditions of the original contracts.
“Russia made payments on two bonds maturing in 2022 and 2042 in rubles rather than US dollars, which represents a change in payment terms from the original bond contracts. According to Moody’s definition, this may be considered a default if the situation is not will change until May 4, which is the end of the grace period,” the agency said.
The report emphasizes that the bond contracts do not require redemption in any other currency than dollars.
Russia has made a payment on two sovereign bonds maturing in 2022 and 2042, due April 4, in rubles rather than dollars.
Since 2018, Russia has been issuing Eurobonds with a ruble redemption option under exceptional conditions, this does not apply to Russia-2022 and Russia-2042 bonds.