JRL NEWSWATCH: “Sanctions Push Russia to First Foreign Default Since Bolshevik Revolution” – WSJ
“A debt default has been long in coming since Western sanctions created payment obstacles Moscow couldn’t overcome.”
“Russia defaulted on its foreign debt for the first time since 1918, pushed into delinquency not for lack of money but because of punishing Western sanctions over its invasion of Ukraine. Russia missed payments on two foreign-currency bonds as of late Sunday …. the expiration of a 30-day grace period since the country was due to pay the equivalent of $100 million in dollars and euros to bondholders. … Russia last failed to pay its foreign borrowing during the Bolshevik Revolution when … Lenin … repudiated the debt of the Russian Empire. Russia defaulted on its ruble-denominated bonds during a financial crisis in 1998, but it was able to stay current with its overseas debt at the time. Litigation over the lack of payment could span years. … In the longer term, the default will make it harder for Russia to re-enter international financial markets. …”