I'm sure Canada will be just fine.Originally Posted by Moses
Well, yeah. Russia is in a bit of an economic pinch at the moment, and homicidal genocides are expensive, so of course they're not going to stop selling oil and gas. Don't act as if Russia is doing the West a favor by continuing to sell gas, or some shit.
Russia says it has ordered the $117 million in interest payments it owes Wednesday to be sent to investors, attempting to avoid its first international default in more than a century. But it's not out of the woods yet.
That's because the funds the country used to make the debt payments came from Russia's frozen foreign assets, sanctioned because of its attack on Ukraine — so it remains unclear whether investors will receive their money.
Anton Siluanov, Russia's finance minister, told state media Russia Today that the country had made good on its obligations to creditors. But the "possibility or impossibility of fulfilling our obligations in foreign currency does not depend on us," Siluanov said, according to RT, warning that the payment might not go through if the United States disallows it.
"We have the money, we made the payment, now the ball is in America's court," he said.
The two coupons Russia must pay on the maturing dollar-denominated eurobonds serve as the first test of Russia's ability to pay its debts while the world heaves massive sanctions on its economy.
If the US blocks the payment, Russia could try to pay in rubles rather than dollars. But that action could constitute a default, Fitch Ratings said Tuesday.
It highlights the crunch Russia is in: The nation has the money to pay its debts. It just can't access about half of those funds after the West placed unprecedented sanctions on its foreign reserves, totaling about $315 billion, according to Siluanov.
If the Russian government defaults, investors' losses could start to mount.
Western investors are less exposed to Russia than they used to be. Sanctions following the annexation of Crimea in 2014 already encouraged them to reduce their exposure. But international banks are owed about $121 billion by Russian entities, according to the Bank for International Settlements.
JPMorgan estimates that Russia had about $40 billion of foreign currency debt at the end of last year, with about half of that held by foreign investors. So a default would be bad news for Russia, which will have to meet its obligations in its practically worthless currency, lacking access to foreign financing. But the global markets probably won't get hurt too badly.
https://www.cnn.com/2022/03/16/inves...nts/index.html
I just hope in 20 years we don't look back on these sanctions as Treaty of Versailles 2.0.
You’re probably the youngest member here so clearly that treat most likely awaits you rather than us old codgers
haha, fixed it before you quoted it.
Might have to get PutinCoin or something going. Hire on some Ukrainians who speak fluent Russian as translators, flood the internet with, "support the troops, defeat the Nazis, buy PutinCoin".
https://www.youtube.com/watch?v=FxgBuhMBXSA
YouTube: Why Putin Didn’t Invade Ukraine During Trump’s Presidency
Not so fast. Not even the most experienced investors know if Russia will default or not just yet.
Regardless if they default or not, the fact that the Russian economy has been destroyed in just a few short weeks is evidence that "Sanctions" if properly applied can have devastating results.
The reason I'm particularly keen on this is because I much prefer "Economic Warfare" to a "Military Warfare". Military wars are totally outdated and result in mostly young gullible soldiers and innocent working-class civilians getting killed - where Economic Wars effect the wealthy power-seekers who sit in high places with the Gods - who make these types of idiotic and self-serving decisions in the first place. Seems a lot more fitting to me.
A Russian government debt default was unthinkable until Putin started playing Genghis Khan and slaughtering his neighbors. They had nearly $650 billion of currency reserves, coveted investment-grade credit ratings with S&P Global, Moody's and Fitch, and were raking in hundreds of millions of dollars a day selling oil and gas at soaring prices. Putin thought he had enough money in reserves to offset the inevitable sanctions that would be imposed the minute he launched his attack (oh, sorry I meant "operation"), but the unprecedented level of sanctions knocked him off his horse and ended up freezing two-thirds of Russia's reserves that were being held overseas. Opps!
Now he wants to talk. Now he's ready to revise his list of demands on the neighbor he's attacking to provide himself with a much-needed off ramp. We'll just have to see how this pans out. Part of me wants to see an agreement, regardless of its content, just for the benefit of the thousands of innocent people who are suffering in Ukraine, but the other part of me would like to see Zelenski tell Genghis to stick his revised "list of demands" straight up his ass.
Dax (March 17th, 2022), Ruthrieston (March 18th, 2022)
https://finance.yahoo.com/m/25d8c539...h-russian.html
Ukraine says fourth Russian general has been killed in combat
Maj. Gen. Oleg Mityaev died Tuesday during the storming of Mariupol, said Ukrainian Interior Ministry adviser Anton Gerashchenko, who published a photo on Telegram of what he said was the dead officer.
It's a guarantee they're going to default. Maybe not on this payment, might take another two or three months, but they'll eventually have to default. They've already said, "we can make this payment with sanctioned funds or rubles, but that's all we have", so they're going to default at some point, as these sanctions aren't going away anytime soon.
Good, if this pans out, we're looking at Western dominance for another few decades. Russia will be in the economic shit house for the next 20 - 30 years hence no help to China aside from natural resources, and the Western world is heavily bolstering it's defense spending now. Xi Je Ping must be livid with Putin because his plans have most likely just went to shit, or have been stalled indefinitely at least.
Dax (March 17th, 2022), Dodger (March 17th, 2022), Ruthrieston (March 18th, 2022)
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