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Translated by: OX News Team – MaiTian

US Trade Secretary Janet Yellen said on Wednesday that it is not legal for US to seize Russian assets for rebuilding Ukraine. US should find other ways to make Russia foot the bill for Ukraine’s post-war reconstruction.  

Image Source: politico

Yellen also said it is likely that the special license which allows Russia to make payments to US bondholders will not be extended after it expires next week, that means Russia will face its first external debt default since the 1917 Russian revolution.

Some European officials have proposed to the EU that the US confiscates $300 billion in Russian central bank assets held abroad to aid devastated Ukraine for its post-war reconstruction. Yellen responded that it is not legitimate and would erode other countries’ confidence in holding their central bank assets in the United States.

Image Source: Bloomberg

Russia currently owns about $40 billion worth of international bonds and has so far been able to pay its debts, thanks to the license granted by the US Treasury allowing the Russian Government to make payments in US dollars. However, the license will expire on May 25, and unlikely to be extended. After that, Russia will only be using Ruble to make payments, resulting in rising risk of a default.


Edited by:  MikeHua
Posted by: Peter Chen

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