Russia finally on the verge of bankruptcy
18:53
Russia may be getting closer to declaring bankruptcy. That's thanks to the U.S. Treasury Department not renewing the country's license, which allows it to pay off its foreign debt. The license expires on Wednesday, May 25.
Failure to renew this license brings Russia closer to the brink of bankruptcy – the country will not be able to pay its obligations to many international debtors, even if it has the means to do so, Reuters news agency points out.
According to the agency, although the license only applies to U.S. entities, its expiration will also make it more difficult for Russia to make other payments, due to the "integral role that U.S. institutions play in the global financial system."
Payments on Russia's international bonds, worth nearly $2 billion, are required before the end of the year.
