Russia Nears Default as US Lets Sanctions Waiver Expire

The US Treasury Department allowed a key sanctions waiver to expire, affecting American investors and pushing Russia closer to default. This waiver had previously enabled US banks to process dollar-denominated bond payments from Russia. With its expiration, Russia faces challenges in servicing its debt, particularly to US holders. Despite this, the ruble remains strong due to Russia's trade surplus from commodity sales. In response, Russia's central bank is holding an emergency meeting to address the strong ruble, with potential measures including a rate cut.

What was the impact of the US Treasury Department letting a key sanctions waiver expire?

• It made it difficult for Russia to service debt in the US.

• It strengthened the US dollar against the ruble.

• It allowed Russia to increase its trade surplus.

• It led to an increase in US exports to Russia.

What is the significance of the US sanctions waiver for American investors?

• It allowed them to trade Russian stocks freely.

• It allowed them to invest in Russian real estate.

• It enabled them to receive bond payments from Russia.

• It provided tax benefits for investing in Russia.

How is Russia attempting to avoid default despite the sanctions?

• By making payments to European debt holders.

• By seeking financial aid from China.

• By increasing oil production.

• By devaluing the ruble.

What is one reason the ruble has remained strong despite sanctions?

• Support from the European Central Bank.

• A significant trade surplus from commodity sales.

• Increased foreign investments in Russia.

• A decrease in Russian imports.

What action is the Russian central bank considering to address the strong ruble?

• Implementing stricter capital controls.

• Cutting interest rates.

• Increasing interest rates.

• Introducing a new currency.