Russia near to defaulting on overseas debts, says ratings agency

Attempts by Moscow to pay creditors in roubles as a result of being cut off from foreign currency reserves could breach loan terms

Russia's switch to making debt payments in roubles has brought the heavily sanctioned country to the brink of defaulting on its debts, according to a leading credit rating agency.

Heaping further pressure on Vladimir Putin's beleaguered government, Moody's said that without a return before 4 May to making payments in dollars as agreed under the terms of Russia's loans, Moscow could be in default, allowing creditors to claim insurance payouts and tainting the country's reputation as a reliable counterparty.