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US says will close Russia's last avenue to pay back international investors

The US said it will close the last avenue for Russia to pay its debt back to international investors, making a Russian default on its debts for the first time since the Bolshevik Revolution

A view shows the Illich Steel and Iron Works during Ukraine-Russia conflict in the southern port city of Mariupol (Photo: Reuters)

A view shows the Illich Steel and Iron Works during Ukraine-Russia conflict in the southern port city of Mariupol (Photo: Reuters)

AP Washington
The U.S. will close the last avenue for Russia to pay its billions in debt back to international investors on Wednesday, making a Russian default on its debts for the first time since the Bolshevik Revolution all but inevitable.
The Treasury Department said in a notification that does not plan to renew the license to allow Russia to keep paying its debtholders through American banks.
Since the first rounds of sanctions, the Treasury Department has given banks a license to process any bond payments from Russia. That window expires at midnight May 25.
There had already been signs that the Biden administration was unwilling to extend the deadline. At a press conference heading into the Group of Seven finance minister meetings in Koenigswinter, Germany, last week, Treasury Secretary Janet Yellen said the window existed to allow a period of time for an orderly transition to take place, and for investors to be able to sell securities.
The expectation was that it was time-limited, Yellen said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: May 25 2022 | 7:31 AM IST

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