Russia repays external debt in rubles after U.S. ends exemption
Russia announced on Wednesday that it will begin paying its external debt in the Louvre after the United States has terminated the exemption that allows Moscow to pay in dollars held in Russia.
The U.S. Treasury announced on Tuesday that it has brought Russia closer to default by closing the escape clause on drastic economic sanctions imposed on Moscow after Moscow sent troops to Ukraine.
“If we refuse to extend this license, we will not be able to continue to process the government’s external debt in US dollars, and payments will be made in Russian currency,” the Treasury said in a statement in Telegram.
The ministry added that it “may later convert (payments) to the original currency,” with a Russian financial institution as the payment agent.
Punishing Western sanctions against Russia has greatly separated the country from the international financial system, including hindering Moscow’s ability to access the funds held by U.S. banks to pay foreign creditors. ..