Davis Polk partner Paul Marquardt was quoted in Bloomberg on the potential effects of Russian sanctions on bondholders. The article notes that bondholders could be facing a long legal battle if sanctions push Russia to a default. Bondholders are currently exploring their options. “The more speculative questions we’ve been getting are, ‘Do I want to buy this as a distressed debt play?’ If you have enough of a risk appetite you could,” Paul said. “Who knows when this is going to be resolved. Trying to size and price that risk is the hard part.”

Russia’s Default Tussle With Bondholders Is Only Just Starting,” Bloomberg (June 7, 2022) (subscription required)