The United States is considering blocking Moscow’s ability to pay US investors holding Russian government bonds after the deadline expires next week, according to a US government official.
According to Bloomberg, the Biden government is ready to make this move that could bring Russia closer to the brink of bankruptcy. “It is under consideration,” the unnamed official told Reuters, adding that the US government was “considering all options to increase pressure on Putin.”
The US Treasury Department’s Office of Foreign Assets Control is not expected to renew the exemption, in the context of sanctions against Moscow, for the payment of foreign bondholders. The exemption is valid until May 25 and, according to Bloomberg, will not be renewed.
Western sanctions have barred trade with the finance ministry, the central bank and Russia’s National Wealth Fund. However, the US Treasury Department’s Office of Foreign Assets Control had issued a temporary exemption for bondholders.
After the exemption expires on May 25, Russia will still have bond payments of nearly $ 2 billion by the end of the year.
The US Treasury Department did not immediately respond to a request for comment from Reuters.
Source: Capital
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