The U.S. will close the last avenue for Russia to pay back its billions in debt to international investors on Wednesday, making a Russian default on its debts for the first time since the Bolshevik Revolution all but inevitable.
File - Treasury Secretary Janet Yellen testifies before the Senate Banking, Housing, and Urban Affairs Committee hearing, May 10, 2022, on Capitol Hill in Washington.
Since the first rounds of sanctions, the Treasury Department has given banks a license to process any dollar-denominated bond payments from Russia.
Without the license to use U.S. banks to pay its debts, Russia would have no ability to repay its international bond investors.
The Russian Finance Ministry prepaid two bonds on Friday that were due this month to get ahead of the May 25 deadline.
Russia has not defaulted on its international debts since the 1917 Revolution, when the Russian Empire collapsed and the Soviet Union was created. »