Moody's ratings agency has confirmed that Russia defaulted on foreign debt for the first time in a century after bond holders did not receive $100m in interest payments.
The missed payments follow a series of unprecedented Western sanctions that have increasingly isolated Russia following its invasion of Ukraine.
Russia lost the last avenue to service its foreign-currency loans after the US removed an exemption last month that allowed US investors to receive Moscow's payments.
"On 27 June, holders of Russia's sovereign debt had not received coupon payments on two eurobonds worth $100m by the time the 30-calendar-day grace period expired, which we consider an event of default under our definition," Moody's said.
"Further defaults on future coupon payments are likely," the agency said in a statement.
Moscow said yesterday there were "no grounds to call this situation a default" as the payments did not reach creditors due to the "the actions of third parties".
The country last defaulted on its foreign debt in 1918, when Bolshevik revolution leader Vladimir Lenin refused to recognise the massive debts of the deposed tsar's regime.