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US Treasury Set to Push Russia Closer to Default

  • US sanctions exemption is due to expire on Wednesday
  • Russia’s last foreign default was under Lenin a century ago
Ruble Sinks as Russia Isolated by Sanctions

Source: Bloomberg

Updated on

The US Treasury Department is expected to tighten sanctions this week on Russia, threatening about $1 billion owed to bondholders for the rest of this year and putting the country once again on the edge of default.

Treasury Secretary Janet Yellen said last week she’s unlikely to extend an exemption expiring on Wednesday that allows Russia to make payments on its foreign-currency bonds to US investors. That decision will close all loopholes allowing any such transactions, according to a person familiar with the matter.