Russia made what appeared to be a late U-turn to avoid a default on Friday, as it made a number of overdue interest payments in dollars on its overseas bonds, despite previously vowing to pay only in rubles as long as its reserves remained frozen.
Russia's $40 billion of international bonds have become the focus of a game of financial chicken amid sweeping Western sanctions — and speculation about a default is likely to revive in less than four weeks, when a U.S. license allowing Moscow to make payments is due to expire.
Russia's finance ministry said it had managed to pay $564.8 million in interest on a 2022 Eurobond and $84.4 million on another 2042 bond in dollars — the currency specified on the bonds.