Russia makes early debt payment dash in bid to swerve default

Russia initiated payment on two of its external bonds on Friday in an attempt to stave off a looming sovereign default ahead of a key U.S. licence allowing such transfers expiring next week

The finance ministry said it channelled $71.25 million on coupon payout for dollar-denominated Eurobonds maturing in 2026 and 26.5 million euros ($28 million) on papers due in 2036.

Russia has faced the prospect of sovereign default since Western capitals imposed sweeping sanctions in the wake of its invasion of Ukraine on Feb. 24 as well as Moscow introducing counter-measures. The country has been all but severed from the global financial fabric.

The two payments had been due on May 27, but Russia is relying on a licence by the U.S. Treasury to be able to transfer the money to international bond holders