Russia in debt default as payment deadline passes

Russia is believed to have defaulted on its debt for the first time since 1998 after missing a key deadline.

Russia has the money to make a $100m payment, which was due on Sunday, but sanctions made it impossible to get the sum to international creditors.

The Kremlin had been determined to avoid the default, which is a major blow to the nation's prestige.

Russia's finance minister called the situation "a farce" and it is not expected to have short-term impact.

This is because Russia does not need to raise money internationally as it is reaping revenue from high-priced commodities such as oil, according to Chris Weafer, chief executive at Moscow-based consultancy Macro Advisory. read more