MOSCOW
RUSSIA defaulted on its international bonds for the first time in more than a century, the United States said on Monday, as two of its debt payments were prevented from reaching creditors, due to sanctions over the Ukraine offensive.
The punitive Western economic penalties have largely severed the country from the international financial system, making it difficult for Moscow to service its debt.
The Russian authorities insist they have the funds to honour the country’s debt and accuse the West of seeking to drive Moscow into a default artificially. “There are no grounds to call this situation a default,” Kremlin spokesman Dmitry Peskov told reporters after a key payment deadline expired Sunday.
“These claims about default, they are absolutely wrong,” he said, adding that Russia settled the debt in May.
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