(Reuters] -Russian officials are considering paying Eurobondholders by using the method it uses to pay for gas payments in roubles. However, investors stated that this move will not allow Russia to prevent a debt default.

According to Russia’s finance minister and the Kremlin, this scheme would permit Moscow to pay bondholders without having to use Western payment infrastructure. This comes just days after Washington rescinded a license that allowed U.S. creditors bond payments and gave Russia the ability to avoid default.

Russia is now one step closer to defaulting its hard currency debts due to the U.S. Treasury’s move. Two coupon payments are due to foreign Eurobond holders this week. However, they have a grace period of 30 days.

Russia claims it has money and will pay. It refuses to talk about default. Anton Siluanov, Finance Minister, stated Monday that Moscow would continue paying its foreign debts using roubles.

According to Vedomosti, foreign Eurobond holders must open Russian hard and rouble accounts to get payments in other currencies, as Russia requires.

His explanation was as follows: “As with gas payments in rubles, we are credit with foreign currency. Here it is exchanged on behalf (the gas buyer), so that the payment can take place.”

“The Eurobond settlement system will function in the exact same way but only in the reverse direction.”

Siluanov stated to Vedomosti, that Russia’s National Settlement Depository would channel the money.

Contrary to many Russian financial institutions the NSD isn’t under Western sanctions. The government won’t place any restrictions on the conversion of roubles into other currencies. He also said the scheme would be reviewed soon by the government.

Dmitry Peskov, a Kremlin spokesperson, said that Siluanov had supported his plan. However, he added that the finance ministry would consult bondholders before it is implemented.

“There’s money. There’s a willingness. Peskov stated that everything will be dependent on these contacts.

Reuters asked the finance ministry to comment but it did not answer. Sources in financial markets said that Russia intends to show the scheme to investors, before two of its payments on bonds due next month, June 23.

SCEPTICISM

Russia currently has approximately $40 billion worth of international bonds. Just under $2 billion is due to Russia before the year ends. Some Russian bonds issued after 2014 have clauses that can be settled in the NSD or other currencies such as roubles.

Bonds usually require all creditors to be paid. Failure to do so is considered default. Investors believe default is inevitable because U.S. creditors are now prohibited from receiving Russian debt payments.

According to a Europe-based investor, “It is legal as a method to obtain money for bondholders. But not as an option to avoid default.”

Investors from the European Union still have the right to receive payment, according to Zia Ullah (partner and head of corporate crimes and investigations at Eversheds Sutherland), “unless an asset-frozen bank is involved in this payments chain.”

Some European energy companies opened Russian Gazprombank rouble accounts after Russia demanded that “unfriendly countries” pay gas prices in rubles or have their services cut off. Russian banks convert the money into roubles by requiring buyers to deposit dollars or euros.

According to a source in the financial markets, it was not decided who would receive Eurobond payments.

Ullah claimed that Russia wouldn’t be able make dollars payments because U.S. bank are prohibited from clearing such transactions.

He stated, “Anything dollar denominated would have had to be paid using a different currency… So long as it was possible to accept non-dollar payment, there’s nothing that can stop it.”

Investors were skeptical because of the negative stigma associated with dealing with Russia.

The payment scheme is deemed “difficult” by a European-based bondholder. He said that although it appeared legal, it was not likely to be accepted. This mechanism would not be accepted by a global fund holding both U.S. and European business.