Russia defaults on foreign debt for first time since 1917 Bolshevik Revolution

Russia is set to default on its foreign debt for the first time since the 1917 Bolshevik Revolution.

Moscow has been unable to pay the $40 billion (€38 billion) in foreign bonds it owes as a result of sweeping sanctions imposed over its war in Ukraine. The measures effectively excluded Russia from the global financial system and froze billions in foreign currency held overseas.

A 30-day grace period on $100 million in interest payments originally due on May 27 expired on Sunday. But it could be some time before a Russian default is confirmed. A default declaration would usually come from ratings agencies or be decided by a court.

The Kremlin says any default is artificial because it has the funds to pay bondholders but is blocked from doing so by the sanctions.

The US Treasury Department last month ended Russia's ability to pay its billions in debt to international investors through American banks. Russia's Finance Ministry then said it would pay dollar-denominated debts in rubles.