Sanctions are 'starting to bite' in Russia, according to western officials, who say the tanking value of the rouble, food shortages similar to those seen during the Soviet-era and approaching the Chinese for assistance is proof that trade bans are having an 'enormous' impact on the Kremlin.This week, Russian officials threatened to repay foreign currency debts in roubles rather than dollars if current sanctions imposed by western nations prevented banks from honouring debts in the currency they were issued.The country's finance ministry said it approved a temporary procedure on Monday, just days before a payment on its external debt was due. However, Eurobond repayments in roubles could be seen as the equivalent of a default - where a credit agreement has been broken - which Russia has accused the west of deliberately trying to organise.
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