U.S. Treasury Confirms Russia Not Barred From Servicing Bonds

The U.S. Treasury’s restrictions on dealings with Russia’s central bank and other Russian institutions don’t bar that country from making payments on its dollar debt, at least until late May, according to a Treasury spokesperson.

The spokesperson, who asked not to be named discussing the matter, highlighted past Treasury guidance that made the point clear. Some bond-market participants have been questioning whether Russia is legally able to make interest and principal payments on its dollar bonds to overseas investors, in light of the U.S. restrictions on Russian government entities.