How Sanctions Are Pushing Russia to Brink of Default: QuickTake

War, sanctions and disrupted payment systems have left the holders of about $150 billion in bonds sold by Russia and its companies abroad bracing for defaults. Fears eased in mid-March when the first interest payments due since Russia’s invasion of Ukraine came through, proving that at least some of the country’s borrowers could still service their foreign currency bonds. The relief was short-lived. In early April, an attempt to pay Russian government dollar-debt obligations was rejected by foreign banks, increasing the risk of the country’s first sovereign default since 1998.

1. What went wrong?

Russia’s Finance Ministry said it still ...