Russia could already be in default on some of its foreign currency debts, according to bondholders that claim they are still owed a small interest payment that Moscow didn’t send to them earlier this spring, WSJ Pro Bankruptcy reported. A change in U.S. sanctions on Wednesday is expected to cut off Russia’s ability to stay current on its dollar-denominated sovereign debt, which it has managed to continue servicing since the invasion of Ukraine began. Some investors, though, allege that Moscow has defaulted already by failing to pay about $1.9 million in interest and they have submitted notices of the possible default to bond custodian Euroclear earlier this month. The allegedly overdue payment represents interest that Russia accrued while it spent 28 days in a grace period in April and early May, the documents show. The bond in question matured in early April. Russia didn’t pay its foreign interest for nearly a month, until an 11th hour payment was made. However, some bondholders have said that Moscow forgot to include an estimated $1.9 million of accrued interest that was generated in the interim, which is now overdue beyond the grace period, and they have accordingly informed Euroclear, the records show.
