Bloomberg has analyzed possible scenarios concerning Russia's increasing foreign debt. According to Bloomberg’s website, Russia's foreign debt has already reached 150 bn US dollars, and on Wednesday the country could default.
Russian Finance Minister Anton Siluanov has ordered a transfer of 117m US dollars for the expected payment on 16 March, but the currency of payment has not been specified.
The Russian government says that "all the debt will be paid off, but it will be in rubles" due to sanctions imposed because of the military invasion of Ukraine.
The publication notes that non-payment, or payment in rubles instead of dollars, will lead to a potential wave of defaults. If Russia pays in dollars this month the default will be postponed. If it does not pay at all, Russia will face a "tough" default that will cut the country off from financial markets.
According to analyst forecasts from the American financial corporation Morgan Stanley, the Russian Federation risks becoming insolvent in the coming months. The company's analysts predict a "Venezuela-style" default in Russia in April.
Earlier, JPMorgan analysts warned that sanctions for a military invasion of Ukraine could lead to default.
On 9 March, Fitch downgraded Russia's credit rating to a pre-default state.