Onlookers are expecting Russia to default on its foreign creditors, as Moscow seeks to repay two bonds in roubles – which has fallen over 40 per cent against the dollar.
It would be the first time this had occurred since the Bolshevik revolution in 1917 under Bolshevik Lenin, The Times first reported.
Russia’s economy is set to lose nearly a third of its value this year, City A.M. reported, as Western sanctions leave the rouble plunging to new depths.
“If we see complications with executing the order then on Tuesday we will prepare a relevant transfer order in the rouble equivalent,” Russian finance minister Anton Siluanov told Russian TV yesterday.
“From Russia’s point of view, we are fulfilling our obligations.”
However, the pair of bonds – worth $117m (£90m) – do not allow for repayment in roubles, according to JP Morgan, which has left investors circling the possibility of the repayments defaulting.
They are the first international bonds the country has pledged to repay since sanctions, which have darted across seas from Japan, Singapore, Australia and the US, as well as in Europe.
If Russia does miss the repayment, the country will have a 30-day grace period to pay back the debt.