Two major U.S. banks suspend operations for Russian debt service

Bloomberg reported on June 13, citing sources, that two U.S. banks, JPMorgan Chase and Goldman Sachs, have suspended operations to repay Russian debt.

Previously, the U.S. Treasury Department refused to extend a general license that would allow Russia to repay its foreign debt under sanctions. Russia’s finance ministry said it will continue to meet its national debt obligations despite tightening external restrictions, and payments will be made in rubles.

Russian Finance Minister Anton Siluanov said that the possible declaration of a technical default on Russian national debt due to the actions of the United States will not have any impact on the lives of Russians.

The report quoted Goldman Sachs in a statement saying: “According to the guidance of the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and Goldman’s policy to reduce operations in Russia, certain operations will no longer be targeted at Russian legal entities.”

The report pointed out that the decision was made after the U.S. Treasury Department suspends operations in the field. Meanwhile, the banks are also doing business this month on the repayment of Russian national debt, according to sources.