The United States is considering blocking payments for Russian government bonds to its American holders. The Ministry of Finance in Washington does not plan to extend the grace period after which Russia could make payments for public debt, Reuters and Bloomberg said with reference to representatives of the US administration.
According to Bloomberg, the administration of President Joe Biden is inclined to this tough scenario, which may bring the default of the Russian Federation closer. This step is at the stage of discussion, the final decision has not yet been made, the interlocutor of Reuters indicated, emphasizing that Washington is considering “all pressure options” for Russian President Vladimir Putin.
One of the components of Western sanctions imposed after the start of the Russian Federation against Ukraine is the ban on transactions with the Russian Ministry of Finance, as well as the Central Bank of the Russian Federation and the National Welfare Fund. However, on March 2, the US Treasury Office made an exception to receive payment of interest and dividends in the framework of repayment of debt and payments to shareholders. This license allowed the Russian state to continue payments on government bonds and thereby prevent default on public debt. Its action expires on May 25. From this moment until the end of 2022, Russia will need to make payments for external sovereign bonds worth almost $ 2 billion.