Russia says its default to spell trouble for Europe

KABUL (Pajhwok): Hit by a raft of US and European sanctions, Russia warns its default on foreign payments may trigger hyperinflation in Europe.

TASS news agency reported the warning was issued by Deputy Chairman of Russian Security Council Dmitry Medvedev on Sunday.

Earlier, European Commission President Ursula von der Leyen claimed that Russia’s default was a matter of time.

In response, Medvedev wrote on his Telegram channel: “Russia’s default may entail Europe’s default, both moral and, quite possibly, tangible.”

The top Russian official insisted public confidence was eroding in the European Union’s financial system that was not very stable.

He said the European Union president’s statement was not about hoped-for peace in Ukraine, but about Russia’s foreign payments default.

Medvedev added: “That’s what they have been dreaming of! This is the European Union’s core strategy. This is what the masochists from Brussels and their overseas playmates really want.”

Russia’s foreign debt was estimated at $59.5 billion as of February 1, 2022, including $38.97 bln in foreign bonded loans.

PAN Monitor/mud

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