LONDON, (Reuters) – Overseas owners of a Russian sovereign bonds that matured last month seek a ruling as to whether $1.9million in interest arrears was a credit event that could allow them eventually to collect a payment on default insurance.

EMEA Credit Derivatives Determinations Committee(CDDC) stated that the holders of the bond 2022 had sent an email notice to Euroclear (one of the largest settlement networks for stock and bond trades in the world), “demanding payment of approximately $1.9 Million”.

They wanted to know if there was an “pay credit” on unpaid accrued interests.

According to the query, “The bonds were matured on April 4, 2022. However, principal and interest due at maturity weren’t paid until May 2,.”

Euroclear sent the notice in May.

Russia paid $650million, including the maturing bond. This was during a grace period that could have resulted in potential interest arrears.

However, default looks likely on all other debts now that the U.S. Treasury has decided not to renew a license which allowed Russian creditors to receive payments despite financial sanctions.

According to JPMorgan’s calculations (NYSE:), there are $2.54 trillion in net notional credit default Swaps (CDS), currently outstanding with Russia. This includes $1.68 billion for Russia and the rest on the CDX.EM.