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Russia could default on debt payments after US doesn't extend license to pay bondholders
Zelenksyy Russian oil embargo push, blocking of its banks a ‘crucial message’: Bill Browder
Hermitage Capital CEO Bill Browder praises Zelenskyy’s call to introduce maximum sanctions on Russian oil and trade at the World Economic Forum in Davos.
The United States didn’t extend its license to Russia to pay bondholders Wednesday, as part of sanctions against the invading country, edging Russia closer to debt default, according to a report.
It would be Russia's first default on international sovereign bonds in more than 100 years since the Bolshevik Revolution, according to Reuters.
Russia has so far managed to pay its foreign debt obligations, despite a raft of financial sanctions from the U.S. and its European allies over Moscow's invasion of Ukraine.
The license, which expired at 12 a.m. ET Wednesday, had allowed the country to make interest payments on sovereign debt – and Russia will owe nearly $2 billion before the end of the year to international creditors.
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Since the first rounds of sanctions, the Treasury Department has given banks a license to process any dollar-denominated bond payments from Russia with a temporary exemption.