(Reuters) – Russia’s National Settlement Depository on Friday (NSD) successfully paid coupons for Eurobonds in foreign currency, a representative from NSD said to Reuters. This could be a sign that Russia might have avoided a default again.

Russia’s debt crisis is unique. According to investors, this will be the first instance of major emerging markets being pushed into default through geopolitics and not empty coffers.

NSD stated that it received foreign currency as coupon payments on Eurobonds due in 2026 or 2036. Both were due by May 27.

Russia made two payment arrangements on its international debt in a last-ditch effort to avoid default. This was just days after the U.S. refused to grant a waiver that allowed transactions to be done in foreign currency on Russian Eurobonds payments.

Russia is now at risk of default after Western capitals placed severe sanctions on Russia following its February 24th deployment of tens and thousands of troops to Ukraine. Russia has had its global financial system cut off and half of its $640 million foreign reserves frozen.

Russian officials claimed that the country has enough money to cover its debt and other countries would consider it a default.

Anton Siluanov, Finance Minister said that Russia would continue to pay its Eurobond obligations in Russia in roubles even if it is unable to do so in foreign currency. He also stated that Russia will uphold its position as a trustworthy borrower through all means.

Siluanov stated that there wouldn’t be any economic impact if America declares Russia in technical default with its Eurobonds.

However, analysts are more skeptical about how the potential fallout for the Russian economy over the long-term, since Russia’s deficit may expand significantly due to the invasion of Ukraine. Takahide, an economist at Nomura Research Institute, stated that this is a concern.

Russian economic growth cannot be sustained without foreign financing. Kiuchi stated that no access to the international market would reduce the Russian economy’s potential for growth in the long-term.