What it would mean if Russia defaults on its debts for first time in two decades?

When Moscow last defaulted it caused waves around the world, but experts say it is different now as Ben Chapman explains

Russia’s rouble has plummeted but the Kremlin wants to use it to pay its dollar-denominated debts (Reuters)

Russia may fail to pay some of its creditors as soon as Wednesday, with western sanctions making it increasingly likely that Moscow will default on its debts for the first time in more than two decades.

A default would be the latest indication of the pain inflicted on Russia by economic measures imposed by western leaders in response to Vladimir Putin’s war in Ukraine.

However, it would also leave investors in the west, including some pension funds, with losses and could be a sign of things to come.