Clock Ticks Towards A Russian Sovereign Debt Default: Explainer

Russia could face its first sovereign external default in over a century after it made arrangements to make a bond repayment in roubles this week.

Russia could face its first sovereign external default in over a century after it made arrangements to make an international bond repayment in roubles earlier this week, even though the payment was due in U.S. dollars.

Russia has not defaulted on its external debt since the aftermath of its 1917 revolution, but its bonds have now emerged as a flashpoint in its economic tussle with Western countries. A default was unimaginable until recently, with Russia rated as investment grade in the run up to its Feb. 24 invasion of Ukraine, which Moscow calls a "special military operation".

Here are answers to key questions:

Can Russia Pay?