1998 default not to recur

Today's Russia is not running the risk of rouble devaluation or a financial crisis, Andrei Illarionov, an aide to the president for economic issues, stated at a press conference, which marks the 5th anniversary of the 1998 default.

"The risk of devaluation is close or, to be more precise, equal to zero today," Illarionov said explaining that currency reserves were higher than the volume of the monetary base of the rouble.

Default occurs when a state is unable to service its debts, the official pointed out. "Today the country complies with its debt obligations to the full extent, that is why there is no risk of default," Andrei Illarionov said.