For the first time since 1918, when the Russian Revolution was entering its second year, the Russian Federation has defaulted on its debts.

In a report from several Taiwanese holders of Russian bonds, Vladimir Putin defaulted on Russia’s loans after failing to pay off $100 million in interest.

President Joe Biden‘s administration said the default shows the effectiveness of the sanctions by NATO and E.U. countries.

“This morning’s news around the finding of Russia’s default, for the first time in more than a century, situates just how strong the reactions are that the U.S., along with allies and partners, have taken, as well as how dramatic the impact has been on Russia’s economy,” the administration said in a statement.

Kremlin officials said that Russia had made payments of $71 million and €26.5 million. The default was because of red tape surrounding sanctioned countries, Dmitry Peskov stated.

“Allegations of default are incorrect because the necessary currency payment was made as early as back in May,” Pesvok said during an interview with Russian state media. “[It’s] not our problem… So there are no grounds to call it a default.”

The effect of the loan default is still unclear, but economists say the toll of western sanctions will not take their full effect for several months. The results right now are a part of a prelude to what is to follow.

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