Russia Made Some Bond Payments to Avoid Historic Debt Default

Russia may have prevented its first external bond default in over a century after some creditors received payments of Russian bond coupons in dollars. Russia had to make payments until Wednesday.

The Russian finance ministry earlier said that it had made payments on two dollar denominated sovereign bonds, worth a total of $117 million.

Whether Russia could pay the debt had been watched by governments and financial institutions alike, as it was seen as the first test for the country’s economy after it was crippled by Western sanctions.

Some other creditors said they had not yet received payment but were hopeful it was on the way, mentioning they had received payments on hard currency bonds from a raft of state-run and private Russian companies in recent days.

The external sovereign bond payments were due first after the sanctions imposed on Russia. Bondholders feared the transaction would not go through.

Russia initially planned to send payments in roubles if dollar payments did not reach foreign bondholders, which would amount to a sovereign default if not corrected within 30 days.

One of the first sanctions the U.S. imposed days after Russia’s invasion of Ukraine was blocking the U.S. citizens from engaging in any transaction involving the country’s central bank.

However, in early March the U.S. allowed Americans to receive interest, dividend or maturity payments in connection with debt or equity issued by Russia’s finance ministry, central bank or wealth fund until May 25.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now


Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today


Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Iberdrola, H2 Green Steel to Build Massive Green Hydrogen Facility

Spanish electric utility company and the world’s second largest wind power producer Iberdrola and Swedish H2 Green Steel plan to build a massive renewable hydrogen plant in either Spain or Portugal to power iron production used to make steel with reduced carbon emissions. 

US Blacklisted 38 Huawei Affiliates

US Secretary of State, Mike Pompeo, said in a statement that the US Commerce Department blacklisted 38 Huawei affiliates from 21 countries. Earlier this month, Pompeo hinted at additional sanctions against Chinese companies and mobile applications in his visit to Prague. 

EU to Unveil Proposal for Corporate Human Rights, Environmental Issues

The European Commission will announce this week a proposal called “Corporate Sustainability Due Diligence”, which is aimed to make large companies operating in the EU liable for their suppliers around the world regarding child or slave labor and environmental standards.

Stay informed

error: This content is protected !!