Russia is believed to have defaulted on its debt for the first time since 1998 after missing a key deadline. Russia has the money to make a $100m payment, which was due on Sunday, but sanctions made it impossible to get the sum to international creditors. The Kremlin had been determined to avoid the default, which is a major blow to the nation’s prestige. Russia’s finance minister called the situation “a farce” and it is not expected to have short-term impact. This is because Russia does not need to raise money internationally as it is reaping revenue from high-priced commodities such as oil, according to Chris Weafer, chief executive at Moscow-based consultancy Macro Advisory. But he said it would create a “legacy” problem if the situation with Ukraine and international sanctions improves. “This is the sort of action that will hang over the economy and make recovery much more difficult when we get to that stage,” he said.(BBC)…[+]