US Halts Russian Bond Payments, Sparking Default Risk
By RT News
The US Treasury cut Moscow’s access to US dollar funds to service sovereign debt coupons on Monday, blocking over $600mn of payments due in maturing bonds.
JPMorgan had been handling Russia’s dollar bond payments, but a source reportedly close to the matter claims they have been blocked from continuing the service leaving Moscow a 30-day grace period to find alternative dollar resources.
The move comes as Washington and the EU consider imposing further sanctions this week, and could spark default if payments are made late, or not in the currency specified.