The United States should let Russia’s debt repayment license expire
United State It will not extend the main waiver that expires on Wednesday that allows Russia to pay US bondholdersThat could bring Moscow to the brink of default as Washington ramps up pressure on the country in the wake of its invasion of Ukraine.
The US Treasury It said on its website on Tuesday that it would not extend the license, which was due to expire on Wednesday, allowing Russia to make its sovereign debt payments to Americans.
The exemption allowed Moscow to continue paying interest and principal and avoid defaulting on its public debt.
Russia has nearly $2 billion in payments due by the end of the year on its international bonds.
Until now, Russia has managed to adapt on its international bond payments despite Western sanctions over the conflict in Ukraine and countermeasures from Moscow, which have complicated the movement of funds across the border.
On Friday, Russia had prepaid an international bond — one issue in euros and one in dollars — a week before it was due.
The country has 40,000 million dollars in international bonds in trading.
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