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IMF chief sees possibility of default in Russia over sanctions

In Kristalina Georgieva opinion, the possibility of a default depends on two factors

NEW YORK, March 11. /TASS/. International Monetary Fund (IMF) Managing Director Kristalina Georgieva suggested that a default in Russia is possible amid sanctions imposed on the country over the events in Ukraine.

"Unprecedented sanctions imposed on Russia have pushed the country into recession. Our assessment is that it would be a deep recession," she told CNBC. "As for default, no longer this is an improbable event."

The official said she "would not speculate how probable" a default is. In her opinion, the possibility of a default depends on two factors: how long the anti-Russian sanctions remain in place and whether Russia will have an opportunity to repay its debts. "None of this is clear at this point," she added.

On February 24, Russian President Vladimir Putin announced a special military operation in response to a request for help by the heads of the Donbass republics. He stressed that Moscow had no plans of occupying Ukrainian territories, but aims to demilitarize and denazify the country. The Russian Defense Ministry said that Russian troops are not targeting Ukrainian cities, but are incapacitating Ukrainian military infrastructure, therefore there are no threats to the civilian population. Subsequently, the United States, the United Kingdom, the European Union and some other countries announced sanctions against Russian companies and individuals.