Journal to portfolio afterlife

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US banks and individuals will be barred from accepting bond payments from Russia’s government after 12:01 a.m. New York time on Wednesday, when a license that has so-far allowed the cash to flow ends, Treasury said in a statement on Tuesday.
The decision to go forward ending the carveout indicates that the US would rather force Russia -- under a slew of punishing sanctions over its war in Ukraine -- into default than allow the nation to drain its coffers to the benefit of US investors.
For one, bondholders outside the US may still be able to receive the funds. And because most holders of Russian bonds are in Europe, there wouldn’t be enough creditors left short to declare a default, according to ITI Capital, one of Moscow’s biggest brokerages. The threshold is usually holders of 25% of the outstanding bonds.

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Not all payments to Americans are barred after May 25. According to a license issued by Treasury on April 7, US investors have until June 30 to divest from Russian financial institution Alfa-Bank AO and until July 1 to divest from diamond company Alrosa PJSC.
 
 

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