Australia imposes sanctions on the Ministry of Finance and the Russian Central Bank

Australia imposed sanctions on the Russian finance ministry and 11 other banks and government organizations on Friday, covering most of the country’s banking assets and all entities managing Russian sovereign debt.

“With our recent inclusion of the Russian Central Bank, Australia has targeted all Russian government entities responsible for issuing and managing Russian sovereign debt,” he said. in a note from Foreign Minister Maris Bain.

Moscow is facing difficulties in meeting its financial obligations in light of the severe sanctions imposed on it to discourage it from continuing the attack on Ukraine.

Rating agency Standard & Poor’s cut Russia’s rating to CC from -CCC on Thursday, as Moscow reported difficulties in meeting debt payments due on denominated bonds in dollars in 2023 and 2043.

The rating agency said Russia’s payment problems were caused by international sanctions for the invasion of Ukraine. The sanctions have reduced Moscow’s foreign exchange reserves and restricted its access to the global financial system.

“Although Russian finance ministry statements suggest that the government is still trying to pass payments to bondholders, we believe debt service payments on Russian bonds in deadline in the coming weeks may face similar technical difficulties, “the agency said.

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