Regarding Russian foreign currency-denominated government bonds, which are due for interest payments in May, several foreign media have reported that investors have not received funds even after the payment grace period has expired.

Default = Awareness that default has occurred is expected to spread in the market.

On May 27, the Russian government said that it had reached the deadline for interest payments on government bonds denominated in dollars and euros, totaling 100 million dollars and about 13.5 billion yen in Japanese yen, and had taken the payment procedure in foreign currency by the deadline.

However, foreign media have reported that investors have not received the funds after the 30-day grace period.

It is believed that the US government ended a special case in May in which its investors could receive interest payments on Russian government bonds.

Foreign media reports that "Russia's foreign currency-denominated government bonds have not defaulted since 1918," and it is expected that the market will be aware that default = default.

The Russian government has stated that it has both the funds and the will to pay interest, but despite the funds, it is an unusual situation where economic sanctions force it into default.

Defaults will narrow the means of financing Russian governments and businesses, but the potential is so widespread that their impact on global financial markets is expected to be limited.