US Set to Block Russian Debt Payments, Raising Default Odds
- Treasury Department won’t extend carve-out that ends May 25
- Finance Minister says Russia will pay in rubles if blocked
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The Biden administration is poised to fully block Russian bond payments to US investors after a deadline expires next week, a move that could force Moscow into its first foreign default in a century.
The Treasury Department’s Office of Foreign Assets Control is expected to let a temporary exemption lapse once it expires on May 25, according to people familiar with the matter. The waiver, issued shortly after the US levied sanctions on Russia over its invasion of Ukraine in February, has given Moscow room to pay coupons, helping it avert default on its government debt.