EXPLAINER: What’s the impact of a Russian debt default?

By KEN SWEET, KELVIN CHAN and STAN CHOE
AP Business Writers

LONDON (AP) — Russia has defaulted on foreign debt for the first time since the Bolshevik Revolution more than a century ago, further alienating the country from the global financial system amid its war in Ukraine. Moscow owed $100 million in interest on two bonds that was originally due May 27. A 30-day grace period expired Sunday, and rating agency company Moody’s on Monday declared the country to be in default. The U.S. ended Russia’s ability to pay international investors through American banks. Russia says it has the money to pay but Western sanctions created “artificial obstacles” by freezing its foreign currency reserves held abroad.