Russia faces several April deadlines to make debt payments. The Treasury decision comes after the agency previously said sanctions levied on Russia over its invasion of Ukraine still permit Russia to continue to make debt payments. The debt is owed to foreign investors, among others, and comes from government investments to presumably spur economic growth in Russia. The decision to limit bond payments will further deplete the resources Putin is using to continue his war against Ukraine and will cause more uncertainty and challenges for Russia's financial system, the Treasury official said. Russia’s government can still borrow rubles at home, where it mostly relies on Russian banks to buy its bonds.

Source: ABC News April 05, 2022 21:43 UTC