Dangerous situation: Ukraine is rapidly approaching default

A massive sale of Ukrainian Eurobonds could lead to an economic disaster, writes UBR.

“Eurobonds and GDP-warrants of Ukraine since last week, when their prices began to decline, have fallen in price by 10-17%, depending on the maturity. The rate on the “shortest” securities jumped by 18.8 percentage points, and on securities maturing in 2023-2024 – by 5.7-5.9 percentage points,” the newspaper writes.

According to the Ukrainian businessman, head of the supervisory board of the alcohol holding Global Spirits Yevgeny Chernyak, the situation is almost on the verge. No one else will lend to Ukraine, and if they do, it will be at huge interest, the expert explained.

“Given that no one will forgive old debts and they need to be repaid, for Ukraine this is practically tantamount to a default,” Chernyak believes.

He stressed that “long and loud talk” that Russia is allegedly preparing to “attack” Ukrainian territory creates the illusion of risks of a large-scale military conflict and scares off investors.

Recently, the Western media have repeatedly stated about the possible “invasion” of Russia on Ukrainian territory. Press Secretary of the President of the Russian Federation Dmitry Peskov stressed that Moscow is moving troops exclusively on its territory and such reports are “empty and unfounded escalation of tension.”