US Set To Block Russian Debt Payments, Pushing Moscow Closer To Historic Default Part of the "all options" pressure campaign...

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The latest attempt at inflicting maximum punishment and pressure on Russia amid its grinding war in Ukraine has many scratching their heads, as the US is now set to block Moscow's ability to pay its sovereign debt - though ironically which Russia appears ready and willing to pay, if it weren't for the far reaching US-led sanctions imposed on its central financial institutions in the first place.

A key US Treasury waiver which provided an exemption for transactions involving Russia's finance ministry, central bank and national wealth fund in instances where US bondholders are paid is set to expire according to schedule on May 25, and the Biden administration is reportedly strongly mulling not renewing it.



A senior administration official said that while "It's under consideration" a final decision has yet to be reached. "We are looking at all options to increase pressure on (Russian President Vladimir) Putin."

Bloomberg reported Tuesday, however, that the US Treasury is going to let the waiver expire, citing people familiar with administration deliberations. That waiver previously issued by the Treasury Department's Office of Foreign Assets Control made exceptions for transacting with sanctioned Russian entities for the purposes of "the receipt of interest, dividend, or maturity payments in connection with debt or equity."

"The waiver, issued shortly after the US levied sanctions on Russia over its invasion of Ukraine in February, has given Moscow room to keep paying investors, helping it avert default on its government debt," Bloomberg points out.

And yet there's reportedly significant internal dissent against such a drastic plan as letting the waiver expire on fears that such a policy would only prove counterproductive to Washington interests. "Some Treasury officials had privately argued that allowing Russia to pay its debt would further drain its coffers and redirect resources that would otherwise be spent on weapons and military operations in Ukraine," the report says. "But the administration has decided against extending the waiver as a way to maintain financial pressure on Moscow, the people said."

Western Creditors be damned😂😂 Russia will lose sovereign Rating but Creditors will lose real money.& Nation will continue to trade with Russia inspite of poor ratings as:
1.They know RUS has never ever defaulted on loan.They are blocked
2. World need RUS Energy & Raw material😂

— AKR (@AkashRa52423008)