Russia Says Will ‘Go to Court’ if Declared in Default

Moscow will start legal proceedings if it is declared in default by the West, Finance Minister Anton Siluanov said Monday

after Russia was declared in "selective" default over the weekend. Russia last week paid its foreign dollar debt in rubles...

...after it was unable to process the payment in foreign currency due to sanctions over Ukraine. 

Credit scores office S&P on Saturday said Russia had gone into "selective default" after it reimbursed dollar-named bonds that matured last week in rubles.

We will present to the court our invoices showing our efforts to pay both in foreign currency and in rubles," he said

The output, however, only affected Moscow's payments in foreign currencies while the rating for its ruble payments remained unchanged. 

Russia has tried in good faith to repay external creditors by transferring the corresponding amounts in foreign currency to pay our debt.

Nevertheless, the deliberate policy of Western countries is to artificially create a default by all possible means," Siluanov said.

For several weeks, Russia avoided the danger of a default, as the U.S. Treasury allowed the use of foreign currency held by Moscow abroad to settle the foreign debt. 

However, last week the United States barred Russia from making debt payments using funds held by American banks.

The Russian finance ministry said Wednesday it was forced to make some $650 million in repayments to foreign debt-holders in rubles as they fell due on April 4. 

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