Russia has avoided defaulting on its sovereign debt by making necessary US dollar payments just before the March 4 deadline.
Payments of $650m (£520m) for international bonds were originally due on April 4.
The US Treasury has blocked Russia from making payments from reserves frozen by Western sanctions, increasing the likelihood of a default.
Russia offered to pay in rubles, but then changed its policy last week.
The decision marks the latest twist in a longstanding dispute with the US Treasury Department over how Russia should be allowed to service its debt.
If Russia had made the payments in rubles only, after a grace period of 30 days from the original payment date on April 4, it would have
But on April 29 it announced it would change course and pay out of the portion of its dollar reserves not held in the West and thus evading sanctions.
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A US official confirmed that the payments had been made.
“Russia was forced to choose between using up its remaining valuable dollar reserves or generating new revenue or defaulting,” the US official said.
“Russia has paid its debts with funds located outside of the US or other partner countries. These valuable reserves have left Russia permanently and can longer be used to fund their invasion of Ukraine,” the official continued.
The payments have arrived in the accounts of some investors, according to unnamed sources quoted by Reuters news agency.
A default may not have been permanently averted. Russia still has about $40 billion worth of international bonds outstanding and could struggle to pay off debt after May 25, when US Treasury regulations allowing interest and debt repayments expire.
A default would have been the first time that Russia had defaulted on its national debt since 1998 – the economic crisis at the end of President Yeltsin’s administration.
A national bankruptcy would be a serious blow to Russia’s image – and Russia is obviously willing to spend valuable foreign exchange reserves to avoid this.
The credit bureaus, which would normally make the final decision on a country’s default, are barred from covering Russian debt under EU sanctions.
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