Russia defaulted on foreign-currency sovereign debt due to sanctions that made payments to foreign creditors impossible, Bloomberg reports..

For months, the Russian Federation has been finding ways to circumvent sanctions imposed after the Kremlin’s invasion of Ukraine. But at the end of the day on Sunday, the $100 million interest grace period ended until May 27, which is considered a default in the event of a missed payment..

According to the publication, this is a sign that the country is turning into an "

Since the beginning of March, the central bank's foreign exchange reserves have remained frozen, and the largest banks have been cut off from the global system..

But given the damage the sanctions have already done to the economy and markets, the default is more symbolic..

Russia itself has refused to default, saying it has the funds to cover any bills, but is unable to make payments..