Russia fails to pay interest on a debt: investor panel

Russia has failed to pay $1.9 million of accrued interest on a sovereign bond, a panel of investors said Wednesday, as Moscow faces the risk of its first default in decades.

The Credit Derivatives Determinations Committee (CDDC) said on its website that it voted  "yes" in answer to a question from bond holders over whether a  "Failure to Pay Credit Event" had occurred.

Punishing Western sanctions on Russia have largely severed the country from the international financial system, making it difficult for Moscow to service its debt.

The country last defaulted on its foreign currency debt in 1918, when Bolshevik revolution leader Vladimir Lenin refused to recognise the obligations of the deposed tsar's regime. 

It defaulted on rouble-denominated debt in 1998 amid a broader financial crisis. But this time, sanctions would be behind the country's failure to repay creditors.