US increases financial sanctions on Russia

After 11 a.m. on May 25 (Vietnam time), Russia is no longer allowed to pay foreign debt in locally owned USD. The US Treasury Department announced the decision at a time when there are only 2 days left until the next foreign payment of Russia.

In this repayment, Russia will have to pay 100 million Euros of interest on two types of bonds: A bond paying in USD, Euro, British Pound or Swiss Franc (Russia can only choose 1 of four types) and a ruble-denominated bond.

This is considered a measure of the US to increase sanctions against Moscow related to the conflict in Ukraine. Because in fact, the sanctions of Western countries against Russia have made this country isolated in the world international financial system and this has made it impossible for Russia to access the amount of USD in Russian accounts located in American banks to pay its debts.

Russia has not yet commented on this information. However, according to Reuters news agency and the Wall Street Daily, the Russian Finance Ministry paid off the debt early to avoid default.

Previously, the sanctions of Western countries against Russia have isolated the country in the international financial system and this has made it impossible for Russia to access the amount of USD in Russian accounts located in the country. American banks to repay the debt.

According to the US Treasury Department, Russia’s external debt is currently between 4,500 and 4.7 trillion rubles (equivalent to 60 billion USD), accounting for 20% of the total public debt. It is expected that in 2022, Russia has 13 rounds of foreign debt repayment.

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