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The US brings Russia's 'default' closer by ceasing to process international debt payments

MADRID, 25 May.

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The US brings Russia's 'default' closer by ceasing to process international debt payments

MADRID, 25 May. (EUROPA PRESS) -

The United States will not renew the exemption that allowed Russia's debt payments to be processed on a case-by-case basis through US and international entities, which expires this Wednesday and had allowed the Eurasian giant to avoid its first foreign currency default since 1918.

"OFAC will not renew the provisions issued that expire on May 25, 2022 at 12:01 EDT (6:01 p.m. Madrid time)," announced the Office of Foreign Assets Control (OFAC), attached to the US Department of the Treasury. .USA

The US Treasury Secretary, Janet Yellen, had already warned last week that it was "reasonably likely" that the Government would decide to let this license expire, recalling that it was a temporary measure with the aim of allowing an orderly transition so that investors could sell your securities.

Following the US government's decision, Moscow will no longer be able to process payments on its foreign currency-denominated debt.

In this sense, the Russian Ministry of Finance advanced last week the payment of two bonds that were due this month. Russia will still have to deal with the debt due on June 23, which, once the 30-day grace period has elapsed, could lead to its declaration of default at the end of July.