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5/24, 9:37 PM (Source: TeleTrader)
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US Treasury won't renew license on Russia's external debt payment

The United States Treasury stated on Tuesday that it will allow the general license that allows Russia to pay US bondholders to expire at 12:01 am ET on Wednesday, without renewing it.

The move signifies that Russia will no longer be able to pay back its debt to international investors, which would further push the country into default. The general license was initially signed on April 7, according to the statement.

Russia has payments worth around $2 billion on its international bonds, which it has been managing to pay off despite the sanctions the US has been implementing. However, the Treasury's most recent announcement now makes it harder for Moscow to make further payments to its holders.

Baha Breaking News (BBN) / AY