Russia is on course for its first debt default this century. But this has less to do with cash running out than failure to pay creditors due to sanctions. Moscow has so far circumvented the west’s efforts to drain its coffers. Hence comes the urgency of G7 leaders’ efforts to step up the pressure.
The imposition of sanctions on gold exports, Russia’s second largest after energy, is one part of their plan. That, though, is largely symbolic as Russian gold is already taboo in western markets. Potentially more damaging is a proposed price cap on Russian oil sales. A price ceiling established by a buyers’ cartel would hit Moscow’s receipts while dampening energy prices and inflation.
