Russia On Edge Of Debt Default As US Payment License Expires

Russia was pushed closer to the brink of debt default on Wednesday as the United States closed the last venue for the country to pay its billions in debt back to international investors.

This is as the United States ramps up pressure on the country following its invasion of Ukraine.

The U.S. Treasury Department said it would not extend the license, as the license allowed Russia to make interest and maturity payments on its sovereign debt to U.S. persons.

The Daily Sabah added that the expiry now appears to make default inevitable, Russia's first major one on international sovereign bonds in more than a century.

Western sanctions imposed after the invasion of Ukraine on February 24 have complicated the movement of money across borders, yet Russia has made a conscious effort to keep paying bondholders.

Russia was previously rated as investment-grade by credit rating agencies, but since the Ukraine invasion, major ratings agencies have stopped assessing the country.