In Russia, analysts at Credit Suisse think that a default scenario, if it were to materialize, is unlikely to have major repercussions for markets outside Russia or for the USD/RUB exchange rate.

Pending coupon payment in focus

“In Russia, credit markets expect a possible failure by the government to pay two Eurobond coupon payments, which are due today (16 March), to pave the way for a default. We think that a default scenario, if materialize, is unlikely to have major repercussions for markets outside Russia or for the USD/RUB exchange rate.”

“While the rouble markets remain dysfunctional we still think that the broad direction of USD/RUB will be determined by the extent of restrictions on Russia’s energy exports.”