US closes loophole for Russian debt payments

US closes loophole for Russian debt payments

The US is cutting off another financial route for Russia to pay its international debts, a move that could push the country closer to default.

Qazet.az reports that the US Treasury Department said it would end a waiver that had allowed US bondholders to accept payments, tightening sanctions imposed over the war in Ukraine.

While the new rules only apply to people in the US, they will make it difficult for Russia to make payments elsewhere given the role of US banks in the global financial system.