(Bloomberg) -- Russia plans to use dollars to repay foreign investors in a $2 billion bond maturing next week, according to a person familiar with the matter.  

The Finance Ministry launched a buyback on Tuesday in rubles, aimed at ensuring local investors get paid. Foreign investors will receive dollars as planned, said the person who asked not to be identified because they aren’t authorized to speak publicly.

Russia’s Bond Buyback in Rubles Aims at Ensuring Locals Get Paid

Despite warnings from credit-rating agencies, Russia has so far continued to pay its foreign bonds, though payments have often been delayed. Some investors in Russia’s 2035 sovereign eurobond said they had received interest that was originally due on Monday. 

The next test will come on Thursday, when the nation faces an $87.5 million coupon payment on notes maturing in 2030. 

©2022 Bloomberg L.P.