Ukrainian official welcomes Russia defaulting on its debt, calls for further sanctions

Read also: Russia enters sovereign default after missing FX bond payments – Bloomberg

“Anti-Russia sanctions work, therefore they should be tightened,” said Yermak.

“For the first time since 1918, Russia has defaulted on sovereign debt denominated in foreign currency. Sanctions have cut off ways (for Russia) to pay its creditors abroad.”

According to Yermak, June 26 was the deadline for Moscow to make interest payments worth around $100 million. Missing these payments constitutes a default.

“Sanctions on the entire Russian banking sector are called for; it’s important to impose them now,” he added.

Read also: Don’t believe the media hype that this is the first Russian default since 1918

Bloomberg reported that Russia has defaulted on its sovereign, foreign currency-denominated debt, for the first time since 1918. Despite having enough cash reserves to make the payments, Western financial sanctions prevent Moscow from actually executing the necessary transfers.

An earlier decree by Russian dictator Vladimir Putin mandated all future Russian sovereign debts be paid in rubles.

Nevertheless, the Russian Finance Ministry kept looking for ways to make interest payments on its Eurobonds in U.S. dollars and euros, after a scheme to substitute them for rubles failed.

Read also: Russia attempts to dodge default by servicing external debt in rubles

On May 25, U.S. Treasury Department refused to renew a key license, which would have allowed Moscow to make these transfers.