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Russia’s Foreign Bond Investors Left Caught in Sanctions Web

  • After defaulted payment creditors may take wait-and-see stance
  • Putin’s war in Ukraine and sanctions complicate normal process
Bloomberg business news
Russia Defaults on Foreign Debt for First Time in a Century
Updated on

Investors caught in the web of international sanctions that pushed Russia into default on bond payments are faced with the choice of seeking recompense now, or biding their time. 

Sanctions aimed at punishing Russia for its invasion of Ukraine shut it out of the world’s financial system, blocking its ability to transfer funds to creditors. It missed payments in late May, and a final deadline to remedy the situation expired on Sunday, creating what the bond documents call an “event of default.”