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the show that faculty issues have been the continent. life is slowly getting back to normal. yeah. well in the streets to give you in the reports on the inside. our correspondence is on the ground reporting from across the continent and all the trend stuff. the mazda u. t. w. news africa every friday on d, w. mm. mm. ah, russia teeter on the edge of default as sanctions rained down on the country over its invasion of ukraine ratings agencies warned last cow could soon stop paying its debts. and as the west looks to hit russia where it hurts the country's oligarchy, and their lucky gods are becoming targets for yet more you sanction. and we take you to yemen where the effects of the war and ukraine are being felt. and the soaring cost of wheat. i'm healthy delaney and berlin,

welcome to the show. is russia about to default on its debts? ratings agency, fitch says so the firm has downgraded russia, sovereign debt rating from b to c, pushing russian bonds further into junk territory. to other raging ratings agencies standard and poors, and moodies took similar steps last week. the agencies think that russia has little motivation to pay a sovereign debt and might be unable to service the payments at all. after all, the countries foreign reserves of around $600000000000.00 have been frozen due to international sanctions. meanwhile, the rule is in free fall, having lost 40 percent of its value since russia began. its war and ukraine and payment of mines are approaching fast on a current debt load of $49000000000.00. russia has to pay $100000000.00 on the 16th of march. another $2000000000.00 is due on april 4th. it comes and been mounting

problems for russia's economy, the central bank saying on wednesday the stock market could remain closed as it seeks to fend off volatility. the currency has also, we can to $137.00 roubles to the dollar. forwarding the value of russian savings and driving up prices for everyday essentials. meanwhile, mcdonalds, coca cola and pepsi have joined the list of companies saying bill temporarily hold operations in the country. now for more on this, i'm joined by my colleague and former moscow reporter for d. w air and told him as well as james sweeney, our financial correspondent and new york. erin, let's start with you. finish reading. the saying that moscow is, is unwilling to pay it. that's essentially is that mean that they can, but they don't want to well, in the report which basically indicated that they thought that basically moscow and

other problems on his hands and wouldn't necessarily be interested in pain if sovereign debt. you have to remember, we're talking about a country who's economy has been in bad shape since 2014 since, and it's crimea. and we saw these rounds or rounds of international sanctions kind of back it into a corner. so even before the ukraine crisis, they were dealing with a weakened economy. and now with the weak rubel, it seems that many governments institutions and also major banks are having difficulty keeping the lights on at the same time. mosque was trying to pay for a very expensive conflict. so basically, the fit report indicated that they thought they would be rather using their, their liquidity right now to keep the lights on in their government and pay for the war rather than the service or service sovereign debt. well james, let's turn to you. what would a default on russia sovereign that mean for global investors? how wide would this reach? well, we can start by the avia, so russian default will definitely be sold by russia. but for the global, it will feel a bit of that heat as well. because just last sunday,

russia said sovereign bon payments would depend on western sanctions and that some dollar payments, some dollar bond payments, could be made a roubles, raising the likelihood of the country's 1st major foreign bond default since 1917 i believe. then sanctions mounted this week, the rubel continued to nosedive, i think it, it 8 tenths of an american sent this morning. and if a default does happen, well, global financial institutions, global financial institutions that are more exposed to russian debt than assumed. well, they're going to take a bit of a beating, and those russian oil sanctions now increase the likelihood of a policy response by russia from moscow that could include selective non payment of its debt obligations. as they been on record of saying that if you do this, you'll pay not us. gus, moscow is viewing it, kind of like this. if you punish me financially, you wanted to value the russian economy, then why would i pay you back? pay money to the opposite end of the table and i'm going to pay you a pe you in my own currency. so, erin, we've seen a bit of a mass exodus that's companies of investors from russia. can the russian economy

survive isolated? well, if the russian economy was completely cut off with markets, no, it couldn't survive. you have to remember, we're talking about a hydrocarbon state. it ex, it makes the vast majority of its income, which it uses to fund the government, through the sale of hydrocarbons. so if you were to cut off that trade, know the government would not be able to keep the lights on the doors open. also, the russian economy is very dependent upon imports, especially when it comes to high technology. and a lot of heavy meant heavy industry goods and manufacturing goods. it's depended upon in imports from both the far east and the west as well. so if you've got those off, yes, there be some incredible problems with the russian government. at the same time we've seen in russia since the annexation of crimea more self reliance when it comes to a lot of the industries that really make up the backbone of the country. we're talking about like the agricultural sector, also the technology sector to a certain degree. we've seen increasing amount of self reliance there because they have been cut off from western economies to

a certain extent. and what we're also seen is, as the sanctions keep increasing, we're seen of stronger access and more of a connection between moscow and beijing, china and russia really deepening their cooperation. we've been seeing this in less several years. and these current run sanctions, least in my view, are more likely to kind of push these 2 nations closer together, closer than maybe many people in washington would like to, to care to admit to sir james. just very briefly, if you can, we actually seem to see some investors saying this is a great time to buy russian assets. what is the logic behind that? are these not as toxic as we actually may all? thank well, what's the market months run wall street since day one with since i've been here, it's been by low sell high and some of these big banks. they're looking to buy cheap and they're turning to russia for those cheap, those cheap opportunities. i read a report from reuters and bloomberg last week in this week as well that j. p. morgan strategist appraising the bonds of russian companies with large global operations because it may be the best way to profit from the stress pricing. and

again, even if the activities of these companies don't reflect the broader view of their firm, they're still going to try to make some money. james sweeney and new york and aaron tilton here with me in the studio. thanks for much for joining us. all the european union on wednesday is that it will freeze the assets of another 14 russian, all our arcs with links to the kremlin. they also will be banned from travelling within the block. the u. s. u. k and even neutral switzerland have also targeted rushes wealthy and response to the war and ukraine for russian oligarchy. that means no more luxury trips to the french riviera or the out. by the lady m. a luxury yacht worth around 65000000 euros. the vessel was seized over the weekend on the italian mediterranean coast. the owner alex a mar dash off was one of the richest men in russia and a major shareholder in the german tourism company to we. yachts airplanes,

company shares and luxury real estate abroad are considered assets and therefore fall under the sanctions against the country on the co does or this mega yacht owned by russian billionaire and potent supporter. igor, such and was prevented from sailing at the last minute. it's valued at around a $120000000.00 euros. it's jackie. so chris, up to you. it was dark that it was about to leave. it was a matter of hours employed. we really did a check on the people and we managed to stop the ship and keep it dark, w e l. it belongs to a highly placed personality in russia, and it's a part of the people the economic sanctions are inflicted upon or full. okay. louise looks like when we're mika, so some of the sanctions are hitting, the richest russians, such as putin confidant and entrepreneur ali share osman off his luxury yacht. one of the largest in the world is worth around 600000000 euros. it's doctrine as

shipyard in homburg harbor, and could soon be confiscated. re mckelly gilbert, are you sure? the u. s. has also impose sanctions announcement off and 7 other prudent, friendly oligarchy. none of these include nichol. i took out of the head of energy giant trans napped as well as billionaire arcot. he rothenberg and his brother. there are also visa restrictions on 19 other russian billionaires the f b. i is specifically looking for him. you have jenny? prego, jin. he is known as putin's cook, running a catering company that serves meals to the kremlin. he is also said to be one of the founders of the wagner group, a paramilitary unit that recently sent $400.00 soldiers in an attempt to assassinate ukrainian president flawed, mere zalinski. now russia's war with ukraine is threatening the global food supply . both countries are major suppliers of food commodities like wheat prices for we'd

have searched to new records as the war, strep shipments and the planting season. countries in the middle east and north africa are particularly dependent on weight from russia and ukraine. without it, experts fear widespread hunger up to 10 bags of flour for customer. they buy what they can despite record prices, unease is spreading in yemen capital santa was over law. everything is different now because of the war between ukraine and russia. we've heard that there will be shortages of flour. so we're preparing for that in the warren. ukraine is causing waves in the middle east. millions were already suffering hardship and hunger in yemen with many dependent on food aid. but now the price of bread is threatening to explode because a 5th of all wheat comes from russia and ukraine. those supplies could soon disappear. food prices are also rising in egypt. flower has risen by 20 percent in

just a few days. cooking oil by 10 percent. ukraine is the world's largest exporter of sunflower oil. worries are growing in lebanon to their even half of all weed exports come from russia and ukraine. the stocks will only last for about a month. the united nations fears shortages could trigger of famine or best is the moment helpful. the amsterdam is indeed he amazed the poorest are the ones who are most affected by this and have no food left to feed their children that to anyone. now ukraine is coming to you and this is going to get much, much worse. in addition to that, l. c. c slim avia, 3 years old, weighing 4 kilos malnourished. children like ronda in yemen are likely to be hit particularly hard by the war in europe. now, before we go or remind her of our top story ratings, agency fetched as russia could be at risk of imminent default on its death

downgrading the country, sovereign dep reading from b to c. switching russian bonds further into junk territory. it comes with mountain problems for russia's economy. it's central bank thing on wednesday, the stock market would remain closed as it seeks to fend off volatility. ah, and that's all from me and the business team here in berlin for more from us, check out our website, dot com slash business till next time. take care. ah ah, the war and the world economy. where all this sanctions biting? how is the war impacting energy prices? supply problems, resource shortages is the next economic crisis are made in

germany. i dw, ah, the youngest victims a few tins wo round half of ukrainian refugees on children escaping the constant danger. they had to say good bye. and the troll morris mall will stay with focus on europe in 60 minutes, back d, w. ah, people in trucks injured when trying to feed the city center and more refugees are being turned away at the board. families playing bomb attacks in syria to be critical. illness with tray to people fleeing and extreme drowned

a raft. getting 200 people has sunk in the gmc around the world. more than 300000000 people are seeking refuge. we asked why? because no one should have to flew. make up your own mind. d. w. for mines. ah, ah, ah, ah, ah! despite warnings for weeks, russia's attack on ukraine triggered shock and alarm. on the 25th of february 2022, russian president vladimir putin launched a massive military assault on a european.