Moscow has scrambled in recent days to find ways of dealing with upcoming payments and avoid a default.
President Vladimir Putin signed a decree last Wednesday to launch temporary procedures and give the government 10 days to choose banks to handle payments under a new scheme, suggesting Russia will consider its debt obligations fulfilled when it pays bondholders in roubles.
"Russia saying it's complying with obligations under the terms of the bond is not the whole story," Zia Ullah, partner and head of corporate crime and investigations at law firm Eversheds Sutherland told Reuters.
"If you as an investor are not satisfied, for instance, if you know the money is stuck in an escrow account, which effectively would be the practical impact of what Russia is saying, the answer would be, until you discharge the obligation, you have not satisfied the conditions of the bond."
With the Rubble Ruble so stronk you would think the bond holders would jump at the chance to settle in Rubble Rubles instead of dollars.
Very strange?
John Burns
I have all the sources. They can't stop the signal.
