Moody''s: Russia indeed defaulted on its debt PARIS: Moody''s Investors Service has confirmed that Russia defaulted on its foreign debt for the first time in a century after bondholders did not receive $100 million in interest payments. The historic default follows a series of unprecedented Western sanctions that have increasingly isolated Russia from the global financial system following its invasion of Ukraine on February 24. Russia lost the last avenue to service its foreign-currency loans after the United States removed an exemption last month that allowed US investors to receive Moscow''s payments. "On 27 June, holders of Russia''s sovereign debt had not received coupon payments on two euro bonds worth $100 million by the time the 30-calendar-day grace period expired, which we consider an event of default under our definition," Moody''s said. Moscow said on Monday there were "no grounds to call this situation a default," as the payments had not reached creditors due to the "the actions of third parties." Russian authorities insist they have the funds to honor the country''s debt, calling the predicament a "farce" and accusing the West of pushing an "artificial" default.