Russia's foreign exchange earnings channel will be constantly declining and will be associated only with the export of raw materials. If the latter also does not stop.
Russia's Rosselkhozbank (RSGB), which is under sanctions, failed to pay the coupon on dollar Eurobonds on time on April 16. This is stated in the statement of the bank.
“Due to the sanctions imposed by the United Kingdom, Rosselkhozbank on April 16, 2022 did not pay interest totaling $ 21,250,000,” – informs the bank.
It is reported that the paying agent refused to accept payment from the bank and pay interest to the depositories of Euroclear/Clearstream/DTC, and further to the owners of Eurobonds.
>Rospilhospbank (RSGB) became the second Russian bank to default
Formerly another bank, Radkombank, under US sanctions, announced that the restrictions do not allow him to service debt obligations, including paying coupons for four issues of Eurobonds.
Radcombank is part of dozens of Russia's largest banks. In April 2021, he closed the agreement on the purchase of Vostok Bank.
It is also known that the Central Bank of Russia has several times expanded the Lombard list for repo transactions to support the liquidity of banks (this mechanism is used by the Central Bank for short-term loans to banks secured by securities). At the same time, bank loans amounted to trillions of rubles. . Russia's foreign exchange earnings channel will continue to decline and will be linked only to the export of raw materials.
Due to sanctions, banks will lose the ability to finance economic growth and the economy using foreign exchange instruments.
Tensions are expected over how foreign currency deposit commitments will be met. Most likely, banks will offer Russian depositors to convert foreign currency deposits into rubles.
