Russia is talking about repaying the debt in rubles. Whereas Western countries claim that it will have to do so in that currency, in which he had taken a loan.
From the summit meeting of the G-7 countries, it emerged clearly that they are worried about the repercussions of the sanctions imposed by the Western countries on Russia. As a result, he announced a new policy of buying oil from Russia. Under this, there will no longer be a complete ban on oil purchases, but countries will be allowed to buy oil from Russia at a predetermined price. Now it is a matter of debate that when Western countries could not impose their conditions on Russia in the matter of complete sanction, then how would they force Russia to accept this condition on purchases. Another big issue is the repayment of Russia’s debt. It is now clear that the loss of Russia’s exit from the global financial system is now going to befall Western institutions as well. Western countries and the media there claim that Russia has failed to pay $100 million in interest on two of its bonds. Thus he has become a defaulter. Whereas Russia claims that it has fulfilled its obligation within the time limit. At the root of the controversy are the definitions of debt repayment.
The US has claimed that Russia’s default is a success of sanctions imposed by the US and its allies against Russia. While Russia says it has paid its dues on time, that money is stuck with Euroclear. Euroclear is a Belgium-based payment settlement agency. The issue is that Russia is talking about repaying the debt in rubles. Whereas Western countries claim that he will have to do so in the currency in which he had taken the loan. But when Western countries have confiscated Russia’s money deposited in foreign currency and removed it from the payment system, how will Russia do that? However, if the claim of the western countries is accepted, then the reality comes to the fore that how will the Western institutions which have given loans, be compensated for their losses? What solution does the West have to ensure this?