Golden Flag Alert

Spotlight on Russia Credit Default Swaps

Sanctions imposed against the Russian Federation and Russian entities in response to Russia’s invasion of Ukraine have introduced several uncertainties regarding Credit Default Swaps relating to sanctioned parties that have outstanding foreign currency debt obligations.

Trade sanctions have raised questions regarding the future condition of Russia’s economy and creditworthiness — but it is the financial sanctions, and Russia’s responses to those sanctions, that are having a more immediate and significant impact on Russian CDS.

These issues raise a number of CDS-related questions, explored in this deck — including the Potential Failure to Pay question with respect to The Russian Federation that was answered in the affirmative yesterday by the EMEA Determinations Committee.

Read our Alert.

Authors

Scott J. Gordon

Scott J. Gordon

Partner New York

Practices

This communication is distributed with the understanding that the author, publisher and distributor of this communication are not rendering legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, assume no liability whatsoever in connection with its use. Pursuant to applicable rules of professional conduct, this communication may constitute Attorney Advertising.