Russia pays foreign debt in USD

According to the Russian Finance Ministry, Moscow has paid a total of about $650 million for the two bonds, which mature in 2022 and 2024, in US dollars.

Earlier this month, Russia attempted to settle these bonds in rubles after the United States banned Russia from paying debt in dollars held by American banks.

However, credit rating agencies downgraded Russia’s credit, and warned that paying debt in local currency would create sovereign debt.

Moody’s said that it could be considered insolvent if Russia did not pay these bonds in USD by May 4 – the end of the 30-day deadline.

Earlier, the Governor of the Central Bank of Russia Elvira Nabiullina affirmed that there would be no default scenario, even though Moscow had some difficulties in paying.