Russia is pushed to the edge of default by the US

New York (CNN Business) Russia is now in danger of default following the United States’ suspension of Russia’s ability to pay its debts using frozen dollars in American banks.

Due to the invasion of Ukraine, about half of Russia’s foreign reserves were sanctioned by Western countries.

It cost $315 billion. The US Treasury had allowed Russia to access some of its assets in order to pay certain investors in dollars. However, the Biden administration stopped the country this week from accessing its stockpiles.

This could make Russia offer to pay its debts in rubles, or none at all. Fitch Ratings stated last month that either action would be considered the default.

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