Starting Wednesday morning, Russia’s government will not pay bondholders through American banks. This is according to the Treasury Department.

Russia’s chances of defaulting on its debt are increasing with this move

This is the most recent sanction the United States has imposed on that country in response to Russia’s invasion of Ukraine.

After the invasion, Biden’s administration granted Russia’s central banking an exception from sanctions. The bank could process bondholder payments through U.S. banks and other international banks.

This exception is set to disappear on Wednesday morning.

This is the latest news. Stay tuned for new updates.