Russia has not repaid its foreign currency debt for the first time in more than a century, as severe Western sanctions designed to punish Moscow for invading Ukraine limit its ability to pay foreign creditors.
The country has cash, but cannot provide it to creditors because sanctions have torn Russia away from international payment systems. The deadline for late payment of $ 100 million in interest expired on Sunday. Russian President Vladimir Putin has offered to repay creditors in rubles, which can then be converted into dollars after the US Treasury Department closed a loophole that allowed the Kremlin to make debt payments to US bondholders through US banks.
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