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Russia to Service Debt in Rubles After US Closes Loophole

  • Finance Minister slams ‘artifical’ situation in statement
  • Ruble payment could breach terms of bonds, setting up default
Bloomberg business news
Russia Nears Default as US Lets Sanctions Waiver Expire
Updated on

Russia will service its dollar debt in rubles after the expiry of a sanctions loophole closed the option of payments in the US currency, potentially putting Moscow on track to default.

The announcement came a day after the US confirmed the end of the waiver, creating another headache for Russia as it tries to get funds to investors. A payment in rubles would breach the terms on a 2026 dollar bond with coupons due this Friday, triggering a 30-day grace period before Russia could potentially slip into default.