For the state of Russia's finances, consider places likeChukotka, the territory separated from Alaska by a narrowstrait.

The government there has racked up debt equal to 144 percent ofits revenue, excluding federal grants which are the highest inRussia, according to Standard & Poor's. Regions from Belgorodnear Ukraine to three North Caucasus republics are also promptingconcern with ratios topping 100 percent. The premium investorsdemand to hold Russian municipal bonds over sovereign securities isthe highest in more than a month and 103 basis points more thanlast year's average, according to UralSib Capital data.

The clock is ticking for President Vladimir Putin to defuse asituation he set off in 2012 with decrees to raise social spending.That contributed to a doubling in the debt load of Russia's morethan 80 regions to 2.4 trillion rubles (US$42 billion) in the pastfive years. Strains on their finances will grow critical in two orthree years, raising the risk of bailouts from a federal budgetalready running a deficit for the first time since 2010, accordingto S&P.