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America revokes the exemption granted to Russia to pay its foreign debt in dollars

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The United States has decided to cancel, starting at 00:01 on Wednesday (0401 GMT), the exemption that allows Russia to pay its foreign debts in dollars, according to the United States Department of the Treasury, in a decision that would accelerate Moscow’s default on its shares.

Therefore, the exemption from the severe financial sanctions imposed on Moscow after the invasion of Ukraine on February 24, two days before the next deadline, is canceled.

The next maturity of the Russian debt repayment program is scheduled for May 27 and amounts to 100 million euros. This amount is the amount of interest payable on two issues, one of which forces Russia to pay the amount in dollars, euros, pounds or Swiss francs and the latter can pay it in rubles.

Surrender is in force since Western countries began to impose sanctions on Russia for the attack on Ukraine, allowing Moscow to avoid default.

Last week, US Treasury Secretary Janet Yellen said Washington made the decision to “provide a time frame for regular transfers and allow investors to sell securities.”

He indicated that the US is likely to end the exemption that allows Moscow to pay its foreign debts in dollars.

On April 29, the governor of the Russian Central Bank, Elvira Nabiullina, stressed that “we cannot speak of default”, while acknowledging that Moscow is facing “payment difficulties”.

The value of Russian foreign debt, according to the Russian Ministry of Finance, is about 4,500-4,700 billion rubles (about fifty billion euros at the current exchange rate), or 20% of the country’s total public debt.

Russia was previously in default on domestic debt in rubles during the 1998 financial crisis, but the country has not defaulted on a foreign debt since 1918, when Bolshevik leader Vladimir Lenin refused to acknowledge the debts Moscow inherited from the Tsar’s regime after being overthrown by the Bolshevik revolution. 1917.

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