Russia says it has ordered bond payments as it looks to avoid default

Russia has reportedly sent an order to make $117m interest payments on two dollar bonds that were due on Wednesday, as it looks to avoid default.

According to reports, Russia’s financial ministry said it had sent an order to Citibank’s London branch to make the payment. It is not known whether the payment was made in dollars or roubles.

According to Bloomberg, the financial ministry will comment separately later on whether the payment has been credited.

Russia had until the end of business on Wednesday to make the payments. If these are not made within the 30-day grace period, it would be Russia’s first default on foreign debt since 1918.

Fitch Ratings said on Tuesday that making a settlement in any currency other than dollars within the grace period would still be considered a default.

According to Russia Today, finance minister Anton Siluanov said the country had made good on its obligations to creditors. However, he added that the "possibility or impossibility of fulfilling our obligations in foreign currency does not depend on us", and that the payment might not go through if the US does not allow it.