RUSSIA HAS DEFAULTED ON ITS OVERSEAS DEBT FOR THE FIRST TIME IN MORE THAN A CENTURY AFTER MISSING A SUNDAY DEADLINE,
RUSSIA HAS THE MONEY TO MAKE A $100M (£81.4M) PAYMENT AND IS WILLING TO PAY, BUT SANCTIONS MADE IT IMPOSSIBLE TO GET THE SUM TO INTERNATIONAL CREDITORS.
THE KREMLIN HAD BEEN DETERMINED TO AVOID THE DEFAULT, WHICH IS A MAJOR BLOW TO THE NATION’S PRESTIGE.
THE RUSSIAN FINANCE MINISTER BRANDED THE SITUATION “A FARCE”.
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.
BUT THAT PAYMENT HAS BEEN STUCK THERE, AND CREDITORS HAVE NOT RECEIVED IT.
