NEW YORK, (Reuters) – The EMEA Credit Derivatives Determinations Committee announced Friday that it had closed the case into credit default swaps being paid to Russian holders after Russia has paid its obligations.

    Russia last week avoided a default, announcing it had paid nearly $650 million it owed in coupons and principal to holders of two bonds, ahead of a grace period expiry on May 4.

In the beginning, the payments were in rubles. The contract could be breached, and the CDS case was opened.

Now, the focus shifts to May 27 when payment is due for a 2016 dollar-denominated and 2021 euro-denominated bonds. After the expiration of the temporary license granted by the U.S. Office of Foreign Assets Control on May 25, which authorizes transactions related to Russian sovereign bond payments, payment falls.

Russian foreign debt payments have been a major problem since Russia invaded Ukraine. Half of the US$600 billion worth of reserves has been frozen.