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U.S. To End Russia's Ability To Pay Bondholders Through U.S. Banks

By RFE/RL May 24, 2022

The United States will not extend a waiver set to expire on May 25 that allows Russia to pay U.S. bondholders through U.S. banks.

The U.S. Treasury Department said in a statement it would not extend a license that allows Russia to make payments on its sovereign debt.

The waiver had allowed Moscow to keep paying interest and principal and avert default on its government debt.

Treasury Secretary Janet Yellen said last week that the United States was unlikely to extend the waiver, but added that if Russia is unable to make the payments and it defaults, it would not represent a significant change in Russia's situation because the country is already cut off from global capital markets.

Russian Finance Minister Anton Siluanov said last week that Moscow would service its external debt in rubles if the United States blocked other options and would not consider itself in default as it had the means to pay.

Based on reporting by Reuters and AP

Source: https://www.rferl.org/a/united-states- russia-bondholders/31866035.html

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U.S. To End Russia's Ability To Pay Bondholders Through U.S. Banks