Mr. Medvedev: If Russia defaults, Europe will also default and hyperinflation

Deputy Chairman of the Russian Security Council Dmitry Medvedev reuters

TASS news agency on April 18 quoted the Deputy Chairman of the Russian Security Council Dmitry Medvedev suppose that the Russian default abroad can lead to hyperinflation and default in Europe.

Comments on the speech of the President of the European Commission Ursula von der Leyen On Russia’s default on its debt it was only a matter of time, Mr. Medvedev said “try it” and pointed out “two things are clear”.

“Russia’s default could lead to European default,” he wrote on Telegram and said that the financial system of the European Union (EU) is unstable and people are losing trust.

In addition, he said that EU officials should not blame Russia if hyperinflation, shortages of essential food and an influx of refugees “will cause a wave of crime”.

Speaking to reporters earlier, Ms. von der Leyen said Western sanctions are shaking Russia’s economy, with hundreds of large companies and thousands of professionals leaving Russia, while GDP is expected to fall by 11% due to Russia defaulted on its debt, which she said was only a matter of time.

According to the Russian Ministry of Finance, Russia’s external debt was $59.5 billion as of February 1, of which $38.97 billion was borrowed from foreign bonds. Currently, Russia has 15 bond loans that are due between 2002-2047.

Earlier, Russian Finance Minister Anton Siluanov said that Russia will repay debt in foreign currency only when monetary assets are unblocked. In case of refusal or lack of response from correspondent banks, Russia will pay in rubles. Russian officials have repeatedly emphasized that there is no real basis for the possibility of the country defaulting on its debt.