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Russia’s Effort to Avoid Default Undermined by New U.S. Sanction

  • Measure intended to deplete Russia’s financial resources
  • EU countries are also discussing option of further sanctions
Bloomberg business news
Treasury Stops Russia From Using U.S. Accounts to Pay Debt
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Russia’s efforts to avoid a sovereign default took another blow after the U.S. Treasury halted dollar debt payments from the country’s accounts at U.S. banks.

The decision further complicates Russia’s attempts to keep meeting debt obligations amid the sanctions imposed after it invaded Ukraine. As the government tries to sidestep its first external default in about a century, those restrictions have hampered and delayed the process of transferring money to bond holders.