Analysis-Russia’s ‘political’ debt default sets emerging market precedent

By Davide Barbuscia and Sujata Rao NEW YORK/LONDON (Reuters) – Russia is on the cusp of a unique kind of debt crisis which investors say would be a first time a major emerging market economy is pushed into a bond default by geopolitics, rather than empty coffers. Until the Kremlin launched an attack on Ukraine on Feb. 24, few would have entertained the possibility of Russia defaulting on its hard currency bonds. Its strong solvency track record, bumper export revenues and an inflation-fighting central bank had made it a favourite of emerging market investors. But the U.S. Treasury’s decision n…

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