The $42 Billion Debt Trap That Putin Has Three Years to Escape

For the state of Russia’s finances, consider places like Chukotka, the territory separated from Alaska by a narrow strait.

The government there has racked up debt equal to 144 percent of its revenue, excluding federal grants, the highest in Russia, according to Standard & Poor’s. Regions from Belgorod near Ukraine to three North Caucasus republics are also prompting concern with ratios topping 100 percent. The premium investors demand to hold Russian municipal bonds over sovereign securities is the highest in more than a month and 103 basis points more than last year’s average, according to UralSib Capital data.