LONDON, (Reuters) – Russia appeared poised to evade a looming sovereign default following overdue payments for two sovereign Eurobonds. These Eurobonds had been sent to creditors by a source who was familiar with the matter on Tuesday.

Russia made what looked to be an abrupt U-turn in order to avoid defaulting on bonds. The finance ministry had announced Friday that it paid $650 million in coupon and principal due to bond holders before the grace period expired on May 4.

According to a U.S. senior official, Moscow paid the amount without using any American reserves.

A source spoke on condition of anonymity to confirm that funds were transferred Monday to bondholders.

Russia’s international bonds worth $40 billion have been the subject of financial strife between Western capitals. They have placed severe sanctions against Russia over the war in Ukraine and Moscow has taken countermeasures.

Due to the curbs, debt payments for corporate and sovereign bonds have been made more difficult. A number of corporations and state-owned entities like Russian Railways are failing to transfer funds at their scheduled times.

Payments due April 4, cover both a bond which had just matured on that date and interest on the one that is due in 2024.

Now, attention is shifting towards future payments to Russia because of pay coupons on May 27, 2016 on a bond in dollars and one in euros.

The temporary license, which allows transactions related to Russian sovereign debt payments and allowed by U.S. Office of Foreign Assets Control (OFAC), expires May 25. However, the U.S. Treasury is not commenting on whether this deadline will be extended.