Russia’s finance ministry said on Thursday that it had made a $117 million payment on interest due on two U.S. dollar-denominated bonds. The payments are due this week to prevent Russia’s first default on foreign debt since the 1917 Bolshevik Revolution.
The ministry said the payment had been made to a “foreign correspondent bank” on Monday, but it was unclear whether the bondholders will receive the money. The ministry said it would provide an update later from Citibank’s London branch, which it said was the paying agent on the bonds.
The country has about $40 billion in sovereign debt, half of which is owned by overseas investors.
The government has a 30-day grace period to make this week’s payments before a default is confirmed. It has said that if Western sanctions prevent it from paying the money in dollars, it will pay in rubles instead.
Fitch Ratings said on Tuesday that payment in rubles for debt owed in dollars would be considered a default.
