Russia avoided a default as one of its dollar-denominated eurobond payments went through on Thursday. JPMorgan processed the payments, as the bank is listed as a paying agent for Russia’s 2030 debt. Last week, Clearstream blocked Russia from the National Settlement Depository, which receives foreign bond payments. Loading Something is loading.
Russia reportedly avoided a bond default Thursday after roughly $447 million in payments for dollar-denominated debt went through.
The US bank giant, which is listed as a paying agent for Russia’s 2030 eurobonds, processed an $87.5 million coupon payment and a $359 million principal payment, sources told Bloomberg.
Last week, Luxembourg-based clearinghouse bank Clearstream blocked the account for the National Settlement Depository, which receives payments from the Russian government for foreign bonds for distribution.
Earlier this month, Clearstream said it would no longer settle domestic trades in Russia, take rubles as currency from settlement, or settle trades for certain stocks and bonds with ties to Russia.
Nonetheless, Russia has been able to pay its foreign debts so far despite Western sanctions that have frozen much of its foreign currency holdings and cut it off from global financial institutions. Other coupon payments for 2035 eurobonds hit investors’ accounts this week, too.
Russia also will use US dollars to make payments that are soon due to foreign holders of a $2 billion bond, while Moscow is set to pay local bondholders using the country’s own currency.
Russia’s central bank has scrambled to keep the economy afloat since the war in Ukraine began. It doubled interest rates in February and limited foreigners from moving money, among other moves.
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