As a result of the multitude of sanctions placed on Russia for its invasion of Ukraine, it has defaulted on interest payments on its debt, DNT reports.
The interest payments were due in the dollar denomination but Russia offered to pay in Rubbles, which was declined by the US Treasury Department.
A Treasury Department Official reasoned that the decline in value of the Rubble has caused some currency manipulation on the part of the Russians making it difficult to ascertain the true value of the Rubble. “We have no credible formula to calculate the conversion of the Rubble,” said the official.
Meanwhile the European Union is set to unveil a sixth round of sanctions on Russia as the community’s ministers still disagree over whether or not to include oil and gas sales by Russia.
Russia invaded neighboring Ukraine on February 24 this year in what the west calls an “unprovoked attack” triggering several rounds of sanctions.
The seven-week war has been longer than what Russia apparently anticipated and has resulted in a withdrawal from the outskirts of Kyiv. Russian President Vladimir Putin has appointed a new General for the war and has recalibrated its strategy to focus on Eastern Ukraine.
DNT News from Correspondents Reports.
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