Russia: In oil they trusted

Russian companies have already defaulted on $1bn worth of rouble-denominated bonds this year, and with more than $10bn to be redeemed by year’s end, further defaults are likely. The country’s sovereign debt this week was downgraded to negative by S&P, with CDSs topping 1000 basis points. Money market rates are hovering around 20%. Stock markets are down 50% this month alone. Oil prices – despite Opec’s production cut announced on October 24 – mean the government can forget about its budget surpl...