Russia will not be able to service its public debt in dollars.

The US Treasury Department has announced that it will not renew the general license that temporarily allowed Russia to make payments to service its foreign debt in dollars while under sanctions. “The Foreign Assets Control Office will not renew the provisions of General License 9C,” said the US Treasury. The license was issued in accordance with the Regulations on Sanctions for Russia’s Malicious Foreign Affairs and expired on May 25. This decision will significantly complicate conditions for Russia’s economy, which is under pressure from Western sanctions and the freezing of assets held in foreign banks, and increase the possibility of Russia defaulting.