US Sanctions Push Russia Towards Default

Russia is no longer allowed to pay its debt holders through US banks starting yesterday, the Treasury Department announced, revoking a special license it had previously granted Moscow when sanctions were first implemented.

• The move means Russia is all-but-guaranteed to default on its international debt for the first time since the 1917 Bolshevik Revolution.

🏦 More deets... Russia has a series of debt service deadlines coming up, including a $107 million interest payment due Friday, and another $400 million due late next month.

• If Russia misses a payment, it’ll face a 30-day grace period before likely being declared in default, though Moscow is expected to challenge that declaration in court.
• The implications of a Russian default are currently unclear, but experts say it should limit the country’s access to global markets and drive up asset seizures both domestically and overseas.

🇺🇦 Zoom out: A quick rundown of recent Russia/Ukraine war happenings: Moscow approved a law removing the upper age limit of 40 for military service, Russia's military continued its all-out assault to capture Ukraine’s eastern Donbas region, and Ukrainian President Volodymyr Zelensky signed a sanctions law enabling officials to seize and sell Russian assets related to its military invasion.