“Investing with the state” no longer seems such a low-risk Russian strategy. Even after the Kremlin backtracked from its apparent readiness to bail out corporate all-comers with a more selective approach, investors assumed no state-controlled company would be allowed to default. After all, giants such as Gazprom, Transneft and Russian Railways rely heavily on the guarantee of state support – explicit or implicit – for debt market access. That assumption, however, has been dented after an aircraft leasing company in December became Russia’s first state-owned business to default since 1998. Bondholders are raising a stink.

Finance Leasing Company, of which the state owns 29 per cent directly plus 52 per cent via United Aircraft Corporation, the state aerospace holding, has missed interest payments on two bonds worth $250m. FLC raised the money last year to finance aircraft construction, including the Sukhoi superjet, the great hope of Russia’s aircraft industry. Russia’s transport minister and UAC signed “comfort letters” to rating agencies pledging FLC would have sufficient funds to meet obligations. But UAC and lawyers are probing whether former FLC managers misused funds to buy assets, including German shipyards.