The US Treasury will not renew the 9C General License, which allows holders of Russian sovereign bonds to receive dollar payments for servicing those securities and repaying debt. Relevant statement The press service of the United States Department of the Treasury published this Tuesday, May 24.
Earlier, on May 18, Russian Finance Minister Anton Siluanov again announced his intention to pay the state’s foreign debt in rubles if the license to repay it in dollars is not renewed.
Sanctions imposed by the West after the Russian invasion of Ukraine prohibit transactions with the Russian Ministry of Finance, the Central Bank or the National Welfare Fund (NWF). However, the US Treasury’s Office of Foreign Assets Control made an exception on March 2 to receive interest and dividend payments as part of debt repayment and shareholder payments. This license allowed the Russian state to continue to pay government bonds and thus avoid a default on the public debt.
According to Bloomberg, after May 25 and until the end of 2022, Russia will have to make payments on external sovereign bonds in the amount of almost $2 billion.