U.S. bond market regulators have announced that the Kremlin has not fulfilled its obligations.

Russia’s sovereign default became more likely after U.S. bond market regulators announced that the Kremlin had not fulfilled its obligations to service Russia’s public debt by offering creditors interest payments on dollar-denominated bonds in rubles.

This is reported by The Wall Street Journal.

As the newspaper notes, the payments in rubles were made on April 6 after the American bank JPMorgan refused to transfer $ 649 million to holders of Russian bonds held in the accounts of the Central Bank of Russia frozen as a result of sanctions.

If Russia does not pay this amount by May 4, when the so-called grace period expires, it will formally be in default or, as analysts of the Moody’s rating agency write, such a situation “can be considered as a default.”

According to the calculations of The Wall Street Journal, the debts that Moscow refuses to service amount to $ 6 billion.

The Ministry of Finance of Russia declares that it has fulfilled its obligations by trying to pay interest on debts in rubles.

Investors buying insurance instruments protecting holders of Russian government bonds in case of default estimate its probability at 93 percent, the newspaper writes.