NEW YORK (AP) — On Wednesday, the United States will block the final door for Russia to repay its billions in debt to international investors.
It's all but certain that Russia will default on its debts for the first time since the Bolshevik Revolution.
In a notification, the Treasury Department stated that it will not renew the license that permitted Russia to continue paying its debt holders through American institutions.
The Treasury Department has allowed banks permission to execute any dollar-denominated bond payments from Russia since the first round of sanctions. The deadline is midnight on May 25.
The Biden administration had previously shown signals of unwillingness to extend the deadline.
The window was created "to give a period of time for an orderly transition to take place, and for investors to be able to sell securities," according to Treasury Secretary Janet Yellen.