The administration of US President Joe Biden is ready to block Russia’s future payments on its foreign debt, which will push the country to the brink of default, Bloomberg reported.
The US Treasury Department’s Office of Foreign Assets Control is expected to suspend a general license, which expires on May 25, according to people familiar with the case. The permit, issued shortly after the United States imposed sanctions on Russia over its invasion of Ukraine, allowed Moscow to continue paying investors, helping the country avoid default on its public debt.
US Treasury Department officials have confidentially said that allowing Russia to continue paying its debt will redirect its funds to other channels instead of buying weapons and financing “military operations” – as Russian President Vladimir Putin calls them. – in Ukraine. However, the Biden administration has decided to terminate the license, thus increasing the financial pressure on Moscow, according to media sources quoted by investor.bg.
Another person familiar with the case said there was still no final decision on the issue.
–
