Russia must avoid a sovereign default after past-due payments on two of its overdue Eurobonds were sent to some of its creditors, a source familiar with the situation said on Tuesday.
Russia has made what appears to be a late turnaround to avoid a bond default, after the finance ministry announced last Friday that it had paid out nearly $650 million in coupons to bondholders before the grace period expired in 4 of May.
A US official confirmed that Moscow made the payment without using frozen US reserves, adding that the exact origin of the funds was unclear.
The source, speaking on condition of anonymity, said the funds had been transferred to some bondholders on Monday.
Russia’s $40 billion in international bonds have become the focus of a financial standoff between Western capitals, which have imposed severe sanctions on the country over its war in Ukraine, and Moscow, which has adopted countermeasures.
The restrictions have complicated the payment of sovereign and corporate bonds, with a number of companies and state entities, such as the Russian Railways, unable to transfer funds in time.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
