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The Ukrainian conflict has thrown the Russian fixed-income market into turmoil.
By Lauréline RENAUD-CHATELAIN, Pictet Wealth Management
Although Western sanctions imposed on Russia following its invasion of Ukraine on 24 February limit the ability of the sanctioned firms to service their debts, it is actually the harsh capital controls imposed by the authorities that have significantly increased the prospects of Russia defaulting on its sovereign debt and of Russian companies following suit.
The decree that bars making coupon payments on ruble-denominated Russian sovereign debt to non-residents came into effect on 2 March, with only Russian residents receiving coupon payments on such debt...
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