Russian debt: the US Treasury prevents Moscow from honoring its dollar payments

Posted Apr 5, 2022, 10:54 AMUpdated on Apr 5, 2022, 11:01 AM

Washington is once again increasing the financial pressure on Moscow. The US Treasury announced on Monday evening that it had halted Russian debt payments in dollars from Vladimir Putin’s government accounts in US banks. The move came as Moscow was to make a same-day payment of $552.4 million on a matured bond. The Russian government also had to pay an $84 million coupon on a dollar sovereign bond maturing in 2042 on Monday, Reuters reported.

“Russia must choose between draining its precious remaining dollar reserves, finding new revenue, or defaulting,” according to a US Treasury spokesman quoted by the “Financial Times”. This American initiative aims to increase pressure on Vladimir Putin, following the massacres of civilians attributed to Russian troops which took place in Boucha and other cities in Ukraine.

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