U.S. not extending license for Russia to service debt

MOSCOW. May 25 (Interfax) - The U.S. Office of Foreign Assets Control (OFAC) will not renew license provisions that allowed transactions necessary to service the debts of the Russian Finance Ministry and Central Bank, which expire on May 25, the agency responsible for enforcing U.S. sanctions said on its website.

The license that allowed Russia to service sovereign dollar debt raised prior to March 1, 2022 was issued almost immediately after the imposition of tough sanctions against Russia. Bloomberg, citing sources, reported last week that the license would probably not be extended.

U.S. Treasury Secretary Janet Yellen later confirmed this. A final decision has not been made yet, but it would be reasonable to assume that the license will lapse, she said.