The country is close to its first default since 1998 as sanctions block payments to creditors
The $100m interest payment was due on 27 May. Russia says the money was sent to Euroclear, a bank which would then distribute the payment to investors.
"They have not got it," says Jay Auslander, a US lawyer who has worked on many government debt cases. "And the overwhelming probability is they're not going to get it."If this money has not arrived within 30 days of the due date, that is, Sunday evening, that will widely be considered a default.Default appears inevitable
The Kremlin now appears to have accepted this inevitability too, decreeing on 23 June stating that all future debt payments would be made in roubles through a Russian bank, the National Settlements Depository, even when contracts state they should be in dollars or other international currencies. This was for two reasons, he said. "The first is that foreign infrastructure - correspondent banks, settlement and clearing systems, depositories - ares prohibited from conducting any operations related to Russia. The second is that foreign investors are expressly prohibited from receiving payments from us."
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