Kirkland Alert

Spotlight on Russia Credit Default Swaps

Sanctions imposed against the Russian Federation and Russian entities in response to Russia’s invasion of Ukraine have introduced several uncertainties regarding Credit Default Swaps relating to sanctioned parties that have outstanding foreign currency debt obligations.

Trade sanctions have raised questions regarding the future condition of Russia’s economy and creditworthiness — but it is the financial sanctions, and Russia’s responses to those sanctions, that are having a more immediate and significant impact on Russian CDS.

These issues raise a number of CDS-related questions, explored in this deck — including the Potential Failure to Pay question with respect to The Russian Federation that was answered in the affirmative yesterday by the EMEA Determinations Committee.

Read our Alert.

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