Moscow settled interest payments in rubles, after sanctions blocked it from foreign currency transactions
As the grace periods on two Russian eurobond coupons expired on Sunday night, multiple Western media outlets rushed to announce that Moscow was now in a state of default on its foreign currency-denominated debt for the first time in over a century.
Bloomberg called it a “a grim marker in the country’s rapid transformation into an economic, financial and political outcast,” while the BBC called it a “major blow to the nation’s prestige.”
The Wall Street Journal even invoked a spectre of the “Bolshevik Revolution when Vladimir Lenin, the newly installed communist leader, repudiated the debt of the Russian Empire.”
The bond holders themselves have yet to declare a default or start any proceedings, and the publications admitted that the label is “mostly symbolic for now” while the situation is “expected to pose unique legal…
