The cost of a five-year credit default swap for Russian debt was $ 5.84 million to protect $ 10 million in debt. That price was almost half that of Thursday, which with about $ 11 million to $ 10 million in debt protection was a message that investors were confident of a possible Russian bankruptcy. Russia has used its foreign exchange reserves outside the country to make the payment, retreating from previous Kremlin threats that it would use rubles to pay off those obligations. In a statement, the Russian Finance Ministry did not say whether future payments would be made in rubles. Despite the dip in the insurance deal, investors remain largely convinced that Russia will eventually default on its debts for the first time since 1917. Standard & Poor’s and Moody’s have said Russia is in “selective default”. of its obligations. Russia has been hit hard by sanctions by the United States, the European Union and others in response to its February 24 invasion of Ukraine and its ongoing military operation to occupy Ukrainian territory. The Credit Market Commission – an industry group of 14 banks and investors that determines whether or not to pay in these exchanges – said on Friday that they “continue to monitor the situation” after Russia’s payment. Their next meeting is on May 3. In early April, Russia’s finance ministry said it had tried to pay $ 649 million expiring on April 6 for two bonds to an unnamed US bank – formerly known as the JPMorgan Chase. At the time, tougher sanctions on Russia’s invasion of Ukraine prevented the payment from being accepted, so Moscow tried to pay off the debt in rubles. The Kremlin, which has repeatedly said it was financially capable and willing to continue paying for its debts, had argued that the emergency had given them a legal basis to pay in rubles, instead of dollars or euros. Investors and rating agencies, however, disagreed and did not expect Russia to be able to convert the rubles into dollars before the 30-day grace period expires next week.
