Russian default?

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Plummeting crude oil prices, international sanctions, the crumbling ruble and rising sovereign debt yields are creating what one analyst called the “perfect storm” for the Russian economy.

For Russia, a perfect storm of economic woe looms - MarketWatch

Yields on Russia’s dollar-denominated debt continue to climb. The yield on the most-recently issued dollar-denominated 10-year Russian bond was around 6.2% Friday, the highest level since it was issued a year ago. Meanwhile, the spread on Russia’s sovereign credit default swaps has hit its highest level since July 2009, when the global economy was still suffering from the fallout of the financial crisis.

For Russia, a perfect storm of economic woe looms - MarketWatch

As of Friday, the Central Bank of Russia had $393.6 billion in gross reserves. Meanwhile, it’s total outstanding debt was $642 billion, according to data from Credit Suisse. Russia has relied almost exclusively on profits from energy exports to pay down this debt. Now those profits are seriously threatened. Oil and natural gas constituted about 68% of Russia’s exports last year, according to the U.S. Energy Information Administration.

For Russia, a perfect storm of economic woe looms - MarketWatch

Instead of the rising living standards he’s delivered the past 15 years in exchange for the public’s acquiescence, the Russian president now holds out declining wages and more austere lifestyles as the price of swollen national pride.

Putin’s New Deal Spells End to 15 Years of Wage Gains - Bloomberg