By Alexander Saeedy

Ukraine on Tuesday made interest payments due under its dollar-denominated sovereign bonds to creditors, showcasing the country's commitment to servicing debt despite a grueling land invasion of the country that has displaced more than million Ukrainian citizens.

Bondholders holding a Ukrainian bond due 2033 have received about $94 million in interest payments due Tuesday, according to people familiar with the matter.

Ukraine's sovereign bonds have been trading at deeply distressed levels since the country was invaded and investors have been uncertain whether a government in Kyiv will be able to stand by its debts in the event that Russia is victorious.

The 2033 bond was quoted between 29 and 32 cents on the dollar this morning, according to AdvantageData.

Although Ukraine is under immense fiscal strain due to the war, it has been the recipient of generous financial aid from allied countries and institutions, such as the IMF, which approved a $1.4 billion financial aid disbursement to the country on March 9.

In February, the U.S. said it would guarantee up to $1 billion in debt raised by the Ukrainian government, while the European Union agreed to send 1.2 billion euros ($1.34 billion) in direct financial assistance.

Despite the military conflict, Ukraine still has access to financial markets, and Tuesday raised 5.4 billion hryvnia ($185 million) from an auction of dollar and hryvnia domestic bonds.

Russia currently stands on the edge of defaulting on its sovereign debts, with $117 million in dollar interest payments due Wednesday that analysts don't expect the Kremlin to be able to pay, given restrictions on the country's foreign-exchange reserves.

Write to Alexander Saeedy at alexander.saeedy@wsj.com

(END) Dow Jones Newswires

March 16, 2022 10:58 ET (14:58 GMT)