Russia could be about to default on its foreign currency debts for the first time in decades, likely beginning a drawn out wrangling process with international bodies. International sanctions on the Central Bank of Russia in response to the unprovoked invasion of Ukraine have blocked off a substantial portion of the country’s foreign exchange reserves, which it would ordinarily use to service sovereign debt obligations. Measures taken by Moscow to mitigate the impact — such as capital controls — have led major ratings agencies to downgrade Russia’s government debt, concluding that a debt default is now highly likely. ... (full story)