Bloomberg) -- The U.S. Treasury’s restrictions on dealings with Russia’s central bank and other Russian institutions don’t bar that country from making payments on its dollar debt, at least until late May, according to a Treasury spokesperson.
The spokesperson, who asked not to be named discussing the matter, highlighted past Treasury guidance that made the point clear. Some bond-market participants have been questioning whether Russia is legally able to make interest and principal payments on its dollar bonds to overseas investors, in light of the U.S. restrictions on Russian government entities.
The Treasury’s guidance said that U.S. persons were authorized “to receive interest, dividend, or maturity payments on debt or equity of the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation through 12:01 a.m. eastern daylight time on May 25, 2022.”
After that date, a specific license would be needed for U.S. persons to receive payments, according to the guidance.
Russian Finance Minister Anton Siluanov said that there are risks that a dollar coupon payment made on March 14 won’t reach bondholders because the government and central bank’s foreign-currency accounts abroad have been blocked by sanctions, RIA Novosti reported Wednesday.
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