Although Russia reportedly made an interest payment to its bondholders to avoid a default last week, it still faces a high risk of defaulting with following deadlines amid international sanctions over the country's ongoing aggression against Ukraine.
But market observers say that a possible default would have limited impact on Japanese financial institutions, given their small exposure compared with their European peers.
Moscow made coupon payments totaling $117 million (¥13.9 billion) on two Russian government bonds denominated in dollars on Thursday, a day after the deadline but within a 30-day grace period. But a $447 million payment is due on March 31, followed by another deadline on April 4.