EXPLAINER: What would a Russian bond default mean?

By The Associated Press

Ratings agencies say Russia is on the verge of defaulting on government bonds following its invasion of Ukraine, with billions of dollars owed to foreigners. That prospect recalls Moscow’s 1998 default that fueled wider financial disruption. Ratings agency Fitch said Wednesday that “a default or a default-like process has begun” because Russia missed a March 2 payment to foreign investors. That set off a 30-day grace period before the country would officially default. Russia faces another interest payment Wednesday. Although the war and sanctions are shaking the global economy through higher fuel and food prices, default by itself probably wouldn’t have the same global fallout as Russia’s 1998 financial crisis.