Russia to pay bonds in rubles, which may cause default
By KEN SWEET
AP Business Writer
NEW YORK (AP) — Russia says it made a debt payment in rubles this week, a move that may not be accepted by Russia’s foreign debtholders and could put the country on a path to an historic default. The action by Russia was in response to the most recent U.S. sanctions, which barred Russia from using dollars or euros held in U.S. banks for debt payments. The Kremlin said Wednesday that it would continue to pay in rubles using a special bank account, and may allow investors to redeem those payments for dollars or euros in the future. It’s unclear that Russia’s debt holders will accept that as payment.
