Russia dodges default for time being as investors get payments

With days remaining before a 30-day grace period expired, Russia unexpectedly tapped its domestic dollar reserves and the money started to flow 

Russian President Vladimir Putin could face bigger hurdles within weeks that scupper future payments and risk a default by the country.

Russia’s closely watched dollar payments on two bonds are trickling through to investors after the country dipped into its local holdings of the US currency and sidestepped its first foreign default in a century.

The transfer of the $650m (€618m) had got tangled up in the wide-ranging sanctions imposed after the invasion of Ukraine. And despite the 11th-hour escape before a Wednesday deadline to get the funds to creditors, Russia could face bigger hurdles within weeks that scupper future payments.