Investors in Russia’s sovereign bonds are looking further down the horizon as Vladimir Putin’s government navigates the fallout of international sanctions in order to stave off default.
A carve-out in U.S. measures against Russia has allowed overseas bondholders so far to receive payments on the nation’s foreign-currency debt, even as restrictions complicate the process. Yet it’s unclear how long that can last. While it’s possible the exemptions could be extended by U.S. authorities, focus is shifting to a showdown at the end of May -- especially as Moscow’s reserves shrink and the economy suffers.
