Russia Defaults on Foreign Debt for First Time in a Century

The video discusses Russia's unique financial situation, where despite having funds, it cannot pay its debts due to Western sanctions. This situation is historically significant as it marks Russia's transformation into an economic outcast. The default is largely symbolic, with legal and financial complexities, as rating agencies cannot declare a default due to sanctions. The situation is rare, with potential long-term implications for Russia's economy and global financial systems.

What does the term 'default' mean in the context of this economic situation?

Why is the current default situation considered largely symbolic?