There was a Sunday deadline for Russia to pay interest on the bonds.
Russia has the money to pay, but it's not possible because of sanctions.
Russia did not default on its foreign debt in the late 19th century.
According to media reports, Russia has become the first country in more than a century to default on its foreign debt due to sanctions.
According to The Wall Street Journal, the country missed a deadline to pay interest on two bonds. According to two sources, some Taiwanese holders of Russian bonds didn't get interest by the deadline.
Last week, Russia said it had transferred the bond payment to the National Settlement Depository, according to a report. The bonds' covenants don't allow for payments in rubles, which makes them a default. The ruble payments can't be accessed by bondholders as Russia's National Settlement Depository has been blacklisted by the EU.
The US Treasury ended a key sanctions exemption for Russian bonds in May. Russia said it would use the ruble to pay down bonds.
Russia has not had a default on its foreign debt since 1918, when the Bolshevik Revolution repudiated the debt of the Tsarist era.
Russia's finances are holding up well despite the fact that it doesn't have the money to pay. As a result of US and European Union sanctions, bond interest payments can't be moved through the international payments system.
Russia had been making good on its bonds despite the sanctions. As international trade restrictions intensify, the country is expected to default on its bonds.
President Putin signed a decree on Wednesday to handle payments on foreign bonds under a new program in order to counter the situation. Russia has tens of billions of dollars in foreign currency payments.
The big three credit rating agencies have all withdrawn ratings on Russian entities due to sanctions.
The finance minister of Russia called the situation a "farce," according to the report.
Siluanov said in an email that anyone can declare what they want. Anyone who knows what's happening knows that this is not a default.
According to lawyers, Russia may have until the end of the day on Monday to pay up.
The overwhelming probability is that Russia won't be able to get the money through the financial institution to bondholders.
According to Insider's Harry Robertson, the impact of Russia's debt default on the world's financial systems would be limited.
Russia's foreign debts are relatively low compared to the size of its economy, so a default is not likely to have a huge impact on the country. It would be harder for Russia to borrow on the international markets if it were to default.
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