INSUBCONTINENT EXCLUSIVE:
The United States starting Tuesday will bar Russia from making debt payments using funds held at American banks, ramping up the economic
pain on Moscow over its invasion of Ukraine, the United States Treasury said.The latest move increases the risk the country will not be
able to pay its obligations."Beginning today, the United States Treasury will not permit any dollar debt payments to be made from Russian
government accounts at United States financial institutions," a Treasury spokesperson told AFP.The official later clarified that the ban
started on Monday when Moscow was due to make a debt payment."Russia must choose between draining remaining valuable dollar reserves or new
revenue coming in, or default."Debt payments previously had been exempt from the near complete lockdown that severed Russia from the global
been allowed to receive payments for oil and gas sales, a key source of foreign currency, although the United States has banned imports
from Russia.But the White House on Monday warned more sanctions were coming on Russian leader Vladimir Putin following the emergence of
Treasury official said in a statement, noting the country "is facing a recession, skyrocketing inflation, (and) shortages in essential
goods."Moscow on Monday was due to make an $84 million interest payment, as well as paying off the remainder of a maturing $2 billion bond
If it does not pay the funds by the end of the 30-day grace period it will be in default.JPMorgan has processed five debt payments since the
Russian invasion prompted Washington and Western allies to impose increasingly severe financial sanctions.The United States measures froze
the government's stockpile of $300 billion in foreign currency reserves held abroad.The Treasury official called the sanctions targeting
Russia's Central Bank as "one of the most potent actions of the 700+ sanctions we've imposed."Major ratings agencies have downgraded the
country, saying the risk of a debt default is rising.Russia last defaulted on its foreign currency debt in 1918, when Bolshevik revolution
ruble-denominated debt in 1998 amid a financial crisis.In the wake of that crisis, Moscow amassed about $600 billion in reserves, largely
from oil and natural gas sales.The government owes about $40 billion in dollar- or euro-denominated debt, though only half of that is held
