Russia ditches ruble and pays debt in dollar to avert default

Russia avoided a sovereign default on Friday by paying its overdue international debt in dollars, after earlier pledging to pay them only in rubles.

Russia's finance ministry said it had made a payment of $564.8 million on a 2022 Eurobond and $84.4 million on a 2042 bond in dollars.

The payments made by Moscow on Friday were due in April but entered a 30-day ‘grace period’ when Russia was unable to make the payments. The final deadline was on May 4.

The ministry said the funds have been channeled to the London branch of Citibank. It is, though, unclear whether the money would make it to the United States and other Western countries.