US Treasury terminates license allowing Russia to service external debt from May 25

The United States did not renew the general license, which allows Russia to make payments to service its external debt, it will expire on May 25 at 07:01 Moscow time, the US Treasury Department announced on its website on Tuesday, reports citing RIA Novosti.

"The U.S. Treasury Department said on its website on Tuesday it would not extend a license, set to expire at 1201 EDT (0401 GMT) on Wednesday, allowing Russia to make payments on its sovereign debt to U.S. persons. The waiver had allowed Moscow to keep paying interest and principal and avert default on its government debt," the statement says.

Earlier this month, Bloomberg reported that the US authorities are ready to fully block Russia’s ability to pay U.S. bondholders after a deadline expires.

"The Treasury Department’s Office of Foreign Assets Control is expected to allow a general license that expires May 25 to lapse, according to people familiar with the matter," the agency said.

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