Sanctions “significantly” increase chance of Russia international debt default – JPMorgan

© Reuters. FILE PHOTO: A sign outside JP Morgan Chase & Co. offices is seen in New York City, U.S., March 29, 2021. REUTERS/Brendan McDermid

LONDON (Reuters) – Sanctions imposed on Russia have significantly increased the likelihood that the country defaults on its dollar- and other international market government debt, investment bank JPMorgan (NYSE:JPM) warned on Wednesday.

“The sanctioning of Russian government entities by the United States, counter-measures within Russia to restrict foreign payments, and disruptions of payment chains present high hurdles for Russia to make a bond payment abroad,” JPMorgan said in a note to clients.

Russia has over $700 million in payments coming due this month, mostly with a 30-day grace period. The next relevant coupon payment date is on March 16, JPMorgan calculated. It also has a 30-day grace period.