Russia rejects Russia debt default claim

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Some Taiwanese holders of Russian eurobonds have not received interest due on May 27 after a grace period expired on Sunday evening, two sources told Reuters.

Putin signed a decree last Wednesday to launch temporary procedures and give the government 10 days to choose banks to handle payments under a new scheme, suggesting Russia will consider its debt obligations fulfilled when it pays bondholders in roubles.

One of the Taiwanese sources told Reuters that with the two Eurobonds in question there was “no rouble clause attached”.

“The coupon cannot be paid in roubles instead,” the source added.

Meanwhile, Moscow has rejected reports that it defaulted on its external debt for the first time in more than a century.

In a call with reporters, Kremlin spokesman Peskov said Russia made bond payments due in May but the fact they had been blocked by Euroclear because of Western sanctions on Russia was “not our problem”.

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