At least two holders of Russian government bonds did receive the interest due on Wednesday. They confirm that to the news agency Reuters† The payments would have been made in dollars, not rubles. It would mean that Russia seems to have escaped default for the time being.
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The Russian Ministry of Finance confirmed the payment of $117.2 million to a Western bank on Thursday morning. In this way the money would have to be channeled to the accounts of the bondholders. ‘The payment was made in foreign currency. We have no problems meeting our obligations,” the ministry said in a statement on Telegram.
• Bankruptcy is inevitable for Kremlin
The US Treasury Department said Wednesday evening that the current sanctions should not stand in the way of payment. Russia can make interest, dividends or repayments on bonds or shares until May 25. The relevant license will expire on that date.
So for the time being, Russia can fulfill its obligations, but the question is what happens next. The Russian Ministry of Finance has announced that it will pay in rubles if dollar transactions become impossible. But credit rating agencies see that as a default.
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