US banks are no longer allowed to release Russian government deposits for debt service.
(Photo: Bloomberg)
New York, Dusseldorf Vladimir Putin shows his cruel and unpredictable side in the war of aggression against Ukraine. At the same time, the Russian President, like the Soviet rulers in the past, attaches great importance to remaining reliable in economic matters. Oil and gas continue to flow out of self-interest, because of the foreign exchange earnings. And despite sanctions, the state has so far serviced its bonds.
But since Monday it has become more difficult. A $2 billion bond issue has since become overdue, though there is still a 30-day grace period. The reason for the non-payment: The US banks are no longer allowed to release the Russian government’s credit balances for debt service.
Apparently, this affects J. P Morgan and Citigroup in particular, which, according to Handelsblatt information, plays a central role in debt service as a “paying agent” for around 40 Russian government bonds and corporate bonds.
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