The US Treasury will not allow the Russian government to make dollar payments to US financial institutions.
The US administration decided to stop the dollar-denominated payments made by the Russian government to US banks to put pressure on Moscow. This move is believed to be designed to neutralize Russia’s use of reserves.
The Russian government has not missed any of its obligations to international investors so far.
Russia has 15 international government bonds valued at approximately $40 billion. Before the Ukraine crisis, roughly $20 billion of this was in the hands of investment funds and fund managers outside of Russia.
While the country was making its payments, a decline was observed in its reserves. According to the statements of the Central Bank of Russia, the country’s foreign exchange and gold reserves decreased to 604.4 billion dollars last week. This figure marked the lowest reserve level since August. Compared to the peak level in February, the country’s reserves decreased by 38.8 billion dollars.
