Moody's believes that Russia defaulted as it paid two sovereign bonds in rubles instead of dollars last April 4, which "changes the payment terms of the original contracts and therefore can be considered a default".

"The bond contracts have no provision for payment in any currency other than dollars," indicates the rating agency in a statement sent out this Thursday, cited by Reuters and the newspaper Negócios. Moody's indicates that Moscow will now have until May 4, which is the end of the grace period, to resolve the situation.

The agency clarified in its note that while some Russian bonds, issued after 2018, allow payments in rubles under some conditions, this does not apply to bonds issued before that year, as is the case with the bonds paid on April 4, with maturity dates in 2022 and 2042. "Moody's view is that investors have not obtained the contractual promise in foreign currency on the payment maturity date."

The Russian Finance Ministry did not respond to a request for comment from Reuters. However, the portfolio holder, Anton Siluanov, had advanced earlier this month that if Russia is forced into "default" due to sanctions imposed by the West, it would take legal action.

If Moscow defaults, it will be the country's first "default" after the Bolshevik revolution of 1917.