The declaration of a default event will need to come from investors because ratings agencies, barred by sanctions from reporting on Russia, have not declared Russia in default. The risk of default emerged in late February after Russia invaded Ukraine and sanctions were imposed to sever the country from international financial markets. Unlike other major defaults in recent history, this one is not likely to have a significant effect on international markets or local residents. The central bank is more concerned about inflation and supporting the economy through an exodus of foreign companies and investment. The sanctions alone are expected to block Russia out of large parts of international capital markets for a long time.

Source: International New York Times June 27, 2022 07:07 UTC