Russia can no longer pay its debts with dollars held in U.S. banks


The United States Treasury on Monday blocked Russia from making debt payments using dollars held at U.S. banks, a move that could force Russia to deplete its domestically held dollar reserves or even default on its loans, Reuters reported Tuesday.
According to Reuters, Russia had two payments due on Monday — "a $552.4 million principal payment on a maturing bond" and an "$84 million coupon payment ... on a 2042 sovereign dollar bond" — both of which were blocked by the Treasury.
"Russia must choose between draining remaining valuable dollar reserves or new revenue coming in, or default," a Treasury spokesperson told Reuters.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The Treasury's new restrictions come as multiple nations have imposed or threatened new sanctions against Russia after Ukrainian forces discovered hundreds of dead civilians in the Kyiv suburbs.
On Tuesday, Reuters reported, the European Union announced that it would ban imports of Russian "coal, wood, chemicals and other products worth about nine billion euros ($9.86 billion) a year."
Despite the international crackdown on Russia's economy, however, the Russian rouble has rebounded to its pre-war value, The Washington Post reported Thursday. The Post attributed the recovery to a mixture of strong oil and natural gas exports, limits on currency exchange imposed by Russia's central bank, and a decline in "panicked customer withdrawals."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Grayson Quay was the weekend editor at TheWeek.com. His writing has also been published in National Review, the Pittsburgh Post-Gazette, Modern Age, The American Conservative, The Spectator World, and other outlets. Grayson earned his M.A. from Georgetown University in 2019.
-
Alchemised: how Harry Potter fanfic went mainstream
In The Spotlight Traditional publishers are signing up fan fiction authors to rewrite their ‘explosively popular’ romances for the mass market
-
Crossword: October 6, 2025
The Week's daily crossword
-
Codeword: October 6, 2025
The Week's daily codeword puzzle
-
Russia: already at war with Europe?
Talking Point As Kremlin begins ‘cranking up attacks’ on Ukraine’s European allies, questions about future action remain unanswered
-
Museum head ousted after Trump sword gift denial
Speed Read Todd Arrington, who led the Dwight D. Eisenhower Presidential Library and Museum, denied the Trump administration a sword from the collection as a gift for King Charles
-
Trump declares ‘armed conflict’ with drug cartels
speed read This provides a legal justification for recent lethal military strikes on three alleged drug trafficking boats
-
Supreme Court rules for Fed’s Cook in Trump feud
Speed Read Federal Reserve Governor Lisa Cook can remain in her role following Trump’s attempts to oust her
-
Judge rules Trump illegally targeted Gaza protesters
Speed Read The Trump administration’s push to arrest and deport international students for supporting Palestine is deemed illegal
-
Trump: US cities should be military ‘training grounds’
Speed Read In a hastily assembled summit, Trump said he wants the military to fight the ‘enemy within’ the US
-
US government shuts down amid health care standoff
Speed Read Democrats said they won’t vote for a deal that doesn’t renew Affordable Care Act health care subsidies
-
YouTube to pay Trump $22M over Jan. 6 expulsion
Speed Read The president accused the company of censorship following the suspension of accounts post-Capitol riot