The United States has said it is “probably” trying to force Russia into debt

The United States has said that it is

Russia-Ukraine War: Russia’s invasion of Ukraine has entered its 73rd day.

Washington:

The United States is likely to end a waiver that would allow Moscow to repay its foreign debt in Russian dollars, a move the U.S. Treasury Secretary said Wednesday, a move that could push Vladimir Putin’s country into default.

“When we first imposed sanctions on Russia, we created a waiver that would allow for a certain period of time for an orderly transition to take place and for investors to be able to sell securities,” said Janet Yellen.

“And the expectation was, it was time limited. So I think the license would reasonably be allowed to expire.”

Punitive sanctions imposed after Russia’s invasion of Ukraine in late February have largely alienated the country from the international financial system, blocking access to dollars held by US banks to repay Moscow’s debts.

The Russian government has tried to pay in local currency, but many bonds do not allow payments in rubles.

As a result, Putin’s government has had to move to the US dollar in Russia to meet those payments – a default clause that is due to expire on May 25.

That expiration date is two days before Russia’s next loan service.

Yellen, speaking to reporters before the G7 meeting of finance ministers in the forest, said a final decision had not been made, but he thought renewing the waiver would be “impossible”.

“Russia is not able to borrow in the global financial markets right now. It has no access to the capital markets. If Russia does not find a legal way to pay this, and then they technically default on their loans, I do not think. This is really a situation in Russia. Represents a significant change, “he said.

(This story was not edited by NDTV staff and was automatically generated from a syndicated feed.)

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