Should Russia fail to complete its debt obligations, it could trigger legal action from creditors and stand as a black mark against the nation’s prestige.

Plus, a formal default could complicate Russia’s future if it were to eventually regain its access to global markets, in ways such as increasing borrowing costs, per the Financial Times.

The debt payments had originally been due on May 27, and Moscow sent them to Russia’s National Settlement Depository. But sanctions prevented Western institutions’ ability to accept the payments.

Importantly, it’s not as if Russia does not have the funds to pay — a default would be triggered primarily due to sanctions, rather than a lack of cash or willingness.