russia can avoid default on eurobonds, but this is not precise yet
After an unsuccessful attempt to make payments in rubles, russia returned to dollars
russia seems to have prevented a historic sovereign default by applying its domestic reserves and trying to make overdue payments in dollars on its international debt obligations.
Earlier on Friday, russia's finance ministry said it had tried to pay in dollars – the country had previously tried to make payments on its dollar bonds in russian rubles, but failed.
The russian Finance Ministry said it had made a payment of $564.8 million on 2022 eurobonds and a $84.4 million payment on 2042 eurobonds, according to Reuters, both in dollars, which had been provided for in the debt agreements from the very beginning.
It is reported that the funds were sent to the London branch of Citibank, but it is unclear whether they will reach the recipients.
Payments were to be made in April and entered into a 30-day grace period before the official default on May 4.
russian government bonds rose on Friday after news from the Finance Ministry. But close observers of Moscow, such as Timothy Ash from BlueBay Asset Management, an emerging market strategist, are unsure if it will be able to avoid default.
Previously. russia was preparing a lawsuit to unfreeze its foreign exchange reserves worth $600 billion.
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