White House expects Russia to default on its debt

White House expects Russia to default on its debt

The Biden administration expects Russia to default on its sovereign debt, White House press secretary Karine Jean-Pierre said.


Moscow “will likely fail to meet its obligation and face default, an enduring sign of their status as a pariah in the global financial system,” she said.


Jean-Pierre added that the White House expects “minimal” effect on the global economy because Russia has “already been isolated financially” by a wave of sanctions.


When the U.S. sanctioned the Russian central bank earlier this year, it allowed an exception for Russia to pay its bondholders through U.S. banks.


The Treasury Department lifted the carveout this week, raising the prospect of a default.

ALSO READ: UK, Spain worried about Russia ‘threat’


However, Putin has failed to achieve goals in Ukraine, Blinken says


Secretary of State Antony Blinken said Russian President Vladimir Putin has failed to accomplish his goals in Ukraine.


“Instead of erasing Ukraine’s independence, he strengthened it, instead of dividing NATO; he has united it, instead of asserting Russia’s strength, he’s undermining it and instead of weakening the international order; he has brought countries together,” Blinken said during a speech at George Washington University.


In a speech largely focused on U.S. policy toward China, Blinken called out Putin’s relationship with Chinese President Xi Jinping.


“Even while Russia was clearly mobilizing to invade Ukraine; President Xi and President Putin declared that the friendship between their countries was, and I quote, ‘without limits,’” he said.


Blinken’s comments come as the U.S. works to discourage Beijing from supporting Moscow’s war in Ukraine.

About The Author

Osigweh Lilian Oluchi is a graduate of the University of Lagos where she obtained a B.A (Hons) in English, Masters in Public and International affairs (MPIA). Currently works with 1stnews as a Database Manager / Writer. [email protected]

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