Russia repaid Eurobonds in dollars a week before the deadline

Kostia Andreikovets

Russia has paid off its debt on Eurobonds in dollars — $ 564.8 million on 2022 Eurobonds and $ 84.4 million on 2042 bonds.

Russiaʼs finance ministry has said it has sent the necessary funds to Citibankʼs London branch.

The payment was made a week before the end of the grace period. Reuters writes that it is still unclear whether the money will reach the United States and other Western countries, but such a step by Russiaʼs Finance Ministry is another major turning point in history with a possible default.

In total, Russia had to repay $ 649.2 million. On April 6, the Ministry of Finance of the Russian Federation announced that it had transferred funds for the payment of coupon income and redemption of Eurobonds in rubles, as the bank did not allow payments in dollars. Thus, Russia had until May 4 to repay the debt under the contract in dollars.

  • The foreign debt of Russia and its companies reaches $ 150 billion, but payments to Russia are currently problematic due to sanctions — Western countries have frozen $ 350 billion in gold and foreign exchange reserves. Because of this, Russia is on the verge of default.