Russia is apparently facing its first default on foreign debt in more than 100 years.

A 30-day period expired on Monday night during which interest on two government bonds in foreign currency had to be paid.

It's about a total of around 100 million US dollars.

If investors didn't get the money, which is likely given the West's harsh financial sanctions, it would be the first default on foreign debt since 1918. The more recent default, in 1998, was on domestic-held debt.

On Monday morning, the Reuters news agency, citing two insiders, reported that several Taiwanese investors continued to receive no interest payments on their Russian government bonds.

This means that Russia could formally face default.

The background to the current case is complicated and seeks historical comparison.

Russia emphasizes that it is economically able and willing to service its debts.

However, this is opposed to severe sanctions, primarily by Western countries, which were imposed in response to Russia's war against Ukraine.

As a result, Moscow can neither access most of its financial reserves in western countries nor transfer domestic reserves to western creditors.

Russian finance minister speaks of "farce"

According to the Ministry of Finance in Moscow, Russia made the payments for the bonds in euros and dollars to its central securities depository NSD.

However, it is considered unlikely that the funds will find their way to the many international holders.

For many bondholders, failure to transfer money owed to their accounts on time constitutes a default.

Large rating agencies, which would normally determine a default, are currently not allowed to do so due to sanctions.

Communities of creditors who could try to legally enforce their claims against Russia have not yet made public appearances.

Russia's Finance Minister Anton Siluanov described the impending default as a "farce" last week.

Anyone who understands the events knows that it is not a matter of default.

As for short-term new borrowing by Russia, a formal default would be largely symbolic, as Russia is currently unable to borrow internationally anyway, and thanks to its rich oil and gas revenues, it doesn't have to.

But the stigma would likely increase its cost of borrowing in the future -- and for many years to come.