Russia plans legal action as S&P says it's defaulted on its foreign debt

Russia has defaulted on its foreign debt because it offered bondholders payments in rubles, not dollars, ratings agency S&P has said.

Russia attempted to pay in rubles for two dollar-denominated bonds that matured on April 4, S&P said in a note on Friday. The agency said this amounted to a “selective default” because investors are unlikely to be able to convert the rubles into “dollars equivalent to the originally due amounts.” Russia is now planning legal action.

“We will sue, because we undertook all necessary action so that investors would receive their payments,” Russian Finance Minister Anton Siluanov said. 

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