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.
-
October 13 editorial cartoons
Cartoons Monday's political cartoons include Donald Trump's consolation prize, government workers during shutdown, and more
-
Can Gaza momentum help end the war in Ukraine?
Today's Big Question Zelenskyy’s request for long-range Tomahawk missiles hints at ‘warming relations’ between Ukraine and US
-
The Israeli hostages and Palestinian prisoners being released
The Explainer Triumphant Donald Trump addresses the Israeli parliament as families on both sides of the Gaza war reunite with their loved ones
-
Trump DOJ indicts New York AG Letitia James
Speed Read New York Attorney General Letitia James was indicted as Trump’s Justice Department pursues charges against his political opponents
-
Judge blocks Trump’s Guard deployment in Chicago
Speed Read The president is temporarily blocked from federalizing the Illinois National Guard or deploying any Guard units in the state
-
Trump urges jail for Illinois, Chicago leaders
Speed Read The Texas National Guard begin operations in the Chicago area
-
Bondi stonewalls on Epstein, Comey in Senate face-off
Speed Read Attorney General Pam Bondi denied charges of using the Justice Department in service of Trump’s personal vendettas
-
Court allows Trump’s Texas troops to head to Chicago
Speed Read Trump is ‘using our service members as pawns in his illegal effort to militarize our nation’s cities,’ said Gov. J.B. Pritzker
-
Does Reform have a Russia problem?
Talking Point Nigel Farage is ‘in bed with Putin’, claims Rachel Reeves, after party’s former leader in Wales pleaded guilty to taking bribes from the Kremlin
-
Judge bars Trump’s National Guard moves in Oregon
Speed Read In an emergency hearing, a federal judge blocked President Donald Trump from sending National Guard troops into Portland
-
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