Russia can’t shake default risk after last-minute bond payment

Aside from Japan and Switzerland the euro zone is the only jurisdiction not to have raised rates

The existing measures imposed against Russia after its invasion of Ukraine have already severely complicated payments, hindering and blocking the movement of money. Picture: Andrey Rudakov/Bloomberg

Russia narrowly avoided a debt default last week, but markets are still priced like it’s on the brink.

Bonds are stuck at distressed levels and five-year credit default swaps put an 87% chance of a default. Those odds are lower than in April, but still elevated.