Russia on the brink of historic debt default as payment period expires

Key Facts

Several media outlets have reported that bondholders have not yet received the payments, after Russia’s attempts to pay in its ruble currency were blocked by international sanctions.
Reuters reported early on Monday, citing two sources, that some Taiwanese holders of Russian eurobonds have not received the interest payments due on May 27, indicating that Russia may be entering its first foreign debt default since 1918, despite having ample cash and willingness to pay.
Siluanov reportedly told Russian state-owned news agency RIA Novosti that the blockage of payments does not constitute a genuine default, which usually come as the result of unwillingness or inability to pay, and called the situation a “farce.”
Ash suggested this process could take years or decades, even in the event of a cease-fire that falls short of a full peace agreement, meaning Russia’s access to foreign financing will remain limited and it will face higher borrowing costs for a long time to come.