{"id":426939,"date":"2022-04-05T17:22:17","date_gmt":"2022-04-05T14:22:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-blocks-russia-from-making-bond-payments\/"},"modified":"2022-04-05T17:22:17","modified_gmt":"2022-04-05T14:22:17","slug":"us-blocks-russia-from-making-bond-payments","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-blocks-russia-from-making-bond-payments\/","title":{"rendered":"#US blocks Russia from making bond payments"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e74bf35a29\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e74bf35a29\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/us-blocks-russia-from-making-bond-payments\/#%E2%80%9CUS_blocks_Russia_from_making_bond_payments%E2%80%9D\" >&#8220;US blocks Russia from making bond payments&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CUS_blocks_Russia_from_making_bond_payments%E2%80%9D\"><\/span>&#8220;US blocks Russia from making bond payments&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>The Biden administration on Monday blocked Russia from paying holders of its sovereign debt more than $600 million from reserves held at American banks \u2014 ratcheting up the pressure on the Kremlin as it tries to avoid a bond default.<\/p>\n<p>The move comes as images from Ukraine reveal horrific war crimes, including massacred civilians who are believed to have died at the hands of Russian soldiers.<\/p>\n<p>On Monday, as the largest of the payments came due, including a $552.4 million principal payment on a maturing bond, the US government decided to cut off Moscow\u2019s access to the frozen funds, according to a US Treasury spokesperson.<\/p>\n<p>The move was meant to force Moscow to make the difficult decision of whether it would use dollars that it has access to for payments on its debt or for other purposes, including supporting its war effort, the spokesperson said.<\/p>\n<p>Russia faces a historic default if it chooses to not do so.<\/p>\n<p>\u201cRussia must choose between draining remaining valuable dollar reserves or new revenue coming in, or default,\u201d the spokesperson said.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/bonds-45.jpg?w=1024\" alt=\"The move puts added pressure on Russian President Vladimir Putin's economy.\" class=\"wp-image-21783631\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/bonds-45.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/bonds-45.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/bonds-45.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The move puts added pressure on Russian President Vladimir Putin\u2019s economy.<\/figcaption><figcaption><span class=\"credit\">via REUTERS<\/span><\/figcaption><\/figure>\n<p>An $84 million coupon payment was also due on Monday on a 2042 sovereign dollar bond.<\/p>\n<p>Under sanctions put in place after Russia invaded Ukraine on Feb. 24, foreign currency reserves held by the Russian central bank at US financial institutions were frozen.<\/p>\n<p>But the Treasury Department had been allowing the Russian government to use those funds to make coupon payments on dollar-denominated sovereign debt on a case-by-case basis.<\/p>\n<p>JPMorgan Chase &amp; Co., which had been processing payments as a correspondent bank so far, was stopped by the Treasury, a source familiar with the matter told Reuters.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/ukraine-140000.jpg?w=1024\" alt=\"Images from Ukraine show horrific war crimes believed to have been committed by invading Russian forces.\" class=\"wp-image-21783664\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/ukraine-140000.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/ukraine-140000.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/ukraine-140000.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Images from Ukraine show horrific war crimes believed to have been committed by invading Russian forces.<\/figcaption><figcaption><span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>The correspondent bank processes the coupon payments from Russia, sending them to the payment agent to distribute to overseas bondholders.<\/p>\n<p>The country has a 30-day grace period to make the payment, the source said.<\/p>\n<p>Last week, Russia again avoided a default on its foreign debt as the Kremlin transferred a $447 million bond payment.<\/p>\n<p>The payment was processed by JPMorgan. It was then transferred to the admin agent, which in this instance is BNY Mellon, sources familiar with the matter told The Post.<\/p>\n<p>Holders of Russian bonds received $87.5 million in coupons as well as $359 million in principal payments.<\/p>\n<p>Since Russia was hit with sanctions, bond payments are taking longer to be processed through the system.<\/p>\n<p>This is the second time in as many months that Russia avoided defaulting on its debt.<\/p>\n<p><em>With Post wires<\/em>\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/04\/05\/us-blocks-russia-from-making-bond-payments\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;US blocks Russia from making bond payments&#8221; The Biden administration on Monday blocked Russia from paying holders of its sovereign debt more than $600 million from reserves held at American banks \u2014 ratcheting up the pressure on the Kremlin as it tries to avoid a bond default. The move comes as images from Ukraine reveal&#8230;<\/p>\n","protected":false},"author":1,"featured_media":426940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/newspress-collage-21782219-1649168407567.png?w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[127594,991,4975,71523,70868,126128,73234],"class_list":["post-426939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-4-5-22","tag-joe-biden","tag-russia","tag-sanctions","tag-ukraine","tag-ukraine-war","tag-vladimir-putin"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/426939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=426939"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/426939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/426940"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=426939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=426939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=426939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}