Russia has avoided its first default since 1918, but it is not out of the woods yet

Russia appears to have avoided its first default in more than a century on foreign currency debt. Saloni Sardana explains what is next for Russia and whether the threat of a default still remains.

A man looks to the screen
Russia said earlier this week that it will be able to pay debt in roubles rather than dollars.
(Image credit: © Konstantin Zavrazhin/Getty Image)

Russia appears to have escaped what could have been its first default on foreign currency since 1918.

It ordered payment of $117m in interest payments on two dollar denominated bonds on Wednesday, despite widespread speculation that it wouldn’t be able to do so. Earlier this week, Russia maintained that it would pay back debts in roubles, rather than dollars – something that would have almost certainly been classified as a default.

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Saloni Sardana

Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times),  Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.

Follow her on Twitter at @sardana_saloni