Russia slips into sovereign default zone after deadline passes
G7 unveils latest sanctions package against Moscow
Rouble loses 2 vs dollar in early trade, pares losses to gain
Russia39;s OFZ treasury bond yields at lowest since early 2022
This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, June 27 Reuters The rouble pared early losses in volatile Moscow trade on Monday as Russia looked set for its first sovereign default in more than a century after a payment deadline expired and the West promised more actions against Moscow over the Ukraine conflict.

A 30day grace period for bondholders to receive 100 million interest payments due on May 27 expired on Sunday. The Kremlin rejected the default on Monday, while the Russian finance ministry blamed Western clearing houses.

Russia has long said it has the money to pay, calling the default artificial as sanctions block foreign bondholders from receiving the cash.

By 1107 GMT, the rouble was 0.3 stronger against the dollar at 53.23 , paring losses, having earlier shed as much as 2 to touch its weakest since June 21 at 54.4975.

The rouble will be likely to stay in the 5055 range versus the dollar in the coming weeks and may test the lower boundary of that range, Dmitry Polevoy, head of investment at Locko Invest said in a note.

The rouble had gained 0.2 to trade at 55.96 versus the euro , also paring early losses that had seen it drop to 57.3375.

The…