Vladimir Putin could have never imagined what the war would do to his people. He thought the war would be over quickly, and Ukraine would become part of the Russian homeland. But the truth is that the Ukrainian people put up a fight that would send shockwaves throughout Asia. Putin needed a quick victory because the ramifications of what he was doing would ultimately lead to Russia’s destruction.
Putin’s war has caused him a lot of trouble. For over a century, Russia has defaulted on its foreign-currency debt for the first time. Sanctions imposed on Russia from other nations have prevented him from paying his bills. And now, Putin is in trouble because he has not paid Russia’s bills.
Putin has threatened the west with retaliation should anyone get involved in the war. But one by one, western powers and private businesses started shutting down their involvement with the Russian people.
Each sanction was a warning to Putin that he should give up on trying to destroy Ukraine. The deadline of May 27 was the final day that the war should end, or payment would be due on his debt. The evil dictator has single-handedly turned Russia into a national nightmare from a financial status.
The Russian people suffered from double-digit inflation, a crashed stock market, reduced financial ratings, frozen bank accounts, and many other things. But Putin’s greed and aspirations have blinded him to the reality of pain and suffering that he has caused his people.
But like all super villains, Putin is looking for a way around the mess he has caused. He claims that Russia has the money needed to pay off the debts they owe. He plans to pay the national debt in rubles instead of accepted currency.
Hassan Malik is a senior sovereign at Loomis Sayles & Company LP. He stated, “It’s a very, very rare thing, where a government that otherwise has the means is forced by an external government into default. Russia thinks it can pay its debt in a currency that no longer carries any weight in the world. Inflation is so bad that the rubles are practically worthless. It’s going to be one of the big watershed defaults in history.”
Time has reported, “A formal declaration would usually come from ratings firms, but European sanctions led to them withdrawing ratings on Russian entities. According to the documents for the notes whose grace period expired Sunday, holders can call on themselves if owners of 25% of the outstanding bonds agree that an ‘Event of Default’ has occurred.”
Putin needs things to go his way to set Russia up as a significant world power. To achieve his goal, he needs to exert power over other nations to keep them from doing things that affect his country. Russia has made a mess of itself and would love to see things lean to their favor.
Putin will go down in history as one of those few Russian leaders that destroyed the country financially. The war with Ukraine is the sole reason they cannot pay their debts. All Putin has to do is pull off Ukraine and stop threatening every other country in his war, and things will begin to get better for his people.
The Russian president is an example of what happens to people who become drunk with power. They ignore their duty to serve and protect and begin to go after things that are not theirs to have.
Putin’s war has changed how the world views the Russian people. At one time, they were viewed as a mighty nation that many feared. But now, they will be seen as a nation bankrupt and unable to be trusted to pay their bills promptly. Putin has done more to hurt the Russian people than he could have ever done to help them.