Russia Counters on Debt Default: Creditors Should Press Claims with Those Blocking the Payments

The Russian Finance Ministry yesterday denied a CNN TV report that Russia had announced a default on a Eurobond payment earlier this month. “Information posted by CNN is not true to facts. Russia did not announce the default on its Eurobond commitments. Default means the debtor either has no money to honor its debt liabilities or no desire to honor such liabilities when funds are available. Neither of the two is the case in point in respect of Russia. The Russian Federation has enough funds to timely service and repay all its debt liabilities,” the Ministry said. Rather, it was the foreign counterparties that defaulted on their contractual obligations to process the payments, the Ministry said. “All the possible claims of creditors related to this situation should be readdressed to authorities of states that unlawfully created obstacles to Russia’s performance of its debt obligations,” reported TASS yesterday.