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US Treasury pushes Russia towards default. What lies next?: An explainer

Russia has around $40 billion of international bonds outstanding, with just under $2 billion in external debt servicing left until year-end

Russia, US treasury
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Russia edged closer to a historic debt default on Wednesday after the United States decided against extending a key license

Reuters London
Russia edged closer to a historic debt default on Wednesday after the United States decided against extending a key license that had allowed Moscow to keep paying bondholders despite the sanctions imposed on it for attacking Ukraine.

The license expired at 12:01 am ET (0401 GMT) on Wednesday, setting Russia on course for its first major default on sovereign international bonds in over a century.

Here are some questions and answers on what might happen next:

What has changed?
 
A license issued on March 2 by the U.S. Office of Foreign Assets Control (OFAC) had allowed for transactions between U.S.
entities

(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 | 11:12 PM IST

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