In a call with reporters, Kremlin spokesman Dmitry Peskov said that Russia made bond payments due in May, but the fact that Euroclear blocked it due to Western sanctions against Russia “is not a problem. We have.”
Russia has struggled to meet $40 billion in bond payments since it invaded Ukraine on February 24, as sweeping sanctions have virtually cut off the country from the global financial system and made its assets untouchable for many investors.
Russia said it had the money to pay it, and described the default as artificial because sanctions prevent foreign bondholders from receiving the money. On Monday, a US official said the default showed how massively the sanctions were affecting the Russian economy.
About half of Russia’s gold and foreign exchange reserves – about $300 billion – have been blocked by Western sanctions imposed after Moscow sent troops into Ukraine.
“Our position is well known. Our reserves are illegally blocked, and all attempts to use these reserves would also be illegal and would amount to complete theft,” Peskov said.
Euroclear did not immediately respond to a request for comment.
In another move to expand sanctions on Moscow, the British government said on Sunday that Britain, the United States, Japan and Canada would ban new imports of Russian gold.
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