MOODY’S in a statement declares that Russia has defaulted on its foreign debt. According to the credit rating agency, Russia missed the coupon payment that pushed the country towards default situation. MOODY’S in its statement, also indicated that “further defaults on future coupon payments are likely.”

According to Moody’s, Russia defaulted on foreign debt because it could not make $100 million interest payments to bondholders and subsequently constituted a default.

As per MOODY’S statement, the last time Russia defaulted on its external debt was during the Bolshevik revolution in 1918.

The Kremlin rejected such default reports and said the payments have been made in foreign currency in May 2022. Kremlin spokesperson Dmitry Peskov told media reporters that “The fact that the funds have not been transferred to the recipients is not our problem.”

Finance Minister Anton Siluanov also rejected such reports by saying that “This is the default of Western countries before themselves. We have money. I reiterate we will make payment in order to keep the image of our country as a reliable state that can be dealt with.”