Russia may be on the cusp of its first default on its foreign debt since the Bolsheviks ousted Czar Nicholas II a century ago.

On April 14, 2022, Moody's Investors Service warned that the country's decision to make payments on dollar-issued debt in rubles would constitute a default because it violates the terms of the contract. A 30-day grace period allows Russia until May 4 to convert the payments to dollars to avoid default.

A default is one of the clearest signals that the sanctions imposed by the US and other countries are having their intended effect on the Russian economy.