Russia said that it will start paying its foreign debt in rubles after the United States ended an exemption allowing Moscow to make the payments in dollars held in Russia.
The US Treasury announced Tuesday it was closing the escape clause to the drastic financial sanctions imposed on Moscow after it sent troops to Ukraine, pushing Russia closer to default.
Noting that the refusal to extend this licence makes it impossible to continue servicing government foreign debt in US dollars, payments will be carried out in Russia’s currency, the finance ministry said in a statement on Telegram.
The ministry added that there would be a possibility to later convert them (payments) into the original currency using a Russian financial institution as the paying agent.
Punishing Western sanctions on