What does this even accomplish? Sure, block money for buying their new issue bonds so that they have trouble borrowing new money, but how does taking their money to pay us back help anything? Why not take their money so that they now have less and have to tap out their resources even more making their borrowing position even more precarious? This is shooting the face to spite the nose.
What does this even accomplish? Sure, block money for buying their new issue bonds so that they have trouble borrowing new money, but how does taking their money to pay us back help anything? Why not take their money so that they now have less and have to tap out their resources even more making their borrowing position even more precarious? This is shooting the face to spite the nose.
They get to give a sheet of paper to Russia in order to shame them. That's about it
They get to give a sheet of paper to Russia in order to shame them. That's about it
Basic summary:
US sanctions prevent transactions with Russia's central bank, finance minister, etc.
A waiver was given so Russia could pay debt to US Bond holders. That waiver is expiring and Biden Admin may not extend it.
Russia has $2 billion in liabilities for rest of 2022. If the waiver expires, they literally have no way to pay their debt.
They are willing to pay, have the assets and have been paying.
This would likely trigger a force majeure and open lawsuits against the US gov by bond holders. That would be fun.