(Bloomberg) — JPMorgan Chase & Co. has processed funds that were earmarked for interest payments due on dollar bonds issued by the Russian government and sent the money on to Citigroup Inc., according to people familiar with the matter.
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JPMorgan was the correspondent bank Russia used to send the payment to Citigroup, which is acting as payment agent on the bonds, the people said, asking not to be identified discussing a private matter. JPMorgan sent the money to Citigroup after it sought and received the required approvals from U.S. authorities on Wednesday, one of the people said.
Representatives for JPMorgan and Citigroup declined to comment.
While European bondholders of Russia’s sovereign debt have received no sign of the funds, the move spurred optimism that the bonds may be settled, sending prices higher across maturities. The implied probability of a…
