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Russia Faces Biggest Debt Test Yet After US Ban on Payments

  • Putin’s government owes about $100 million in interest Friday
  • US investors no longer allowed to accept Russian bond payments
The headquarters of Bank Rossii in Moscow.

The headquarters of Bank Rossii in Moscow.

Photographer: Andrey Rudakov/Bloomberg
Updated on

Russia’s ability to sidestep its first foreign default in a century is turning more fraught as another payment comes due on the warring nation’s debt.

Investors are supposed to receive about $100 million of interest on Russian foreign debt in their accounts by Friday, payments President Vladimir Putin’s government says it has already made. That’s unlikely to satisfy concerned bondholders who are keen to see the cash after the US Treasury closed a loophole that previously allowed American banks and individuals to accept such payments.