Russia Defaults on Foreign Debt for First Time Since 1918

“Russia defaulted on its foreign-currency sovereign debt for the first time in a century, the culmination of ever-tougher Western sanctions that shut down payment routes to overseas creditors,” Bloomberg reports.

“For months, the country found paths around the penalties imposed after the Kremlin’s invasion of Ukraine. But at the end of the day on Sunday, the grace period on about $100 million of snared interest payments due May 27 expired, a deadline considered an event of default if missed.”

Axios: “This is the foreseeable outcome of sanctions imposed due to the invasion of Ukraine, even though Russia had successfully pushed off the inevitable for months. For now, the default is mostly notable for its symbolism as Russia’s first foreign debt default since 1918, reflecting the country’s international pariah status and crumbling economy.”