Russia is back on the brink of a debt default after the US blocked its dollar payments. Here’s what happens next.

Russia is back on the brink of a debt default after the US blocked its dollar payments. Here’s what happens next.

It had all been going so well. Russia's government had been surprising investors by sending payments on its foreign currency bonds, despite the sanctions slapped on the country over its invasion of Ukraine. But on Monday the US Treasury said it would Russia to make any dollar debt payments using accounts at American banks. The Treasury told JPMorgan, Russia's foreign correspondent bank, that it should not process more than $600 million of maturity and coupon payments that were due Monday, a person familiar with the matter told Insider. JPMorgan declined to comment. Analysts said the move sharply raised the risk of a Russian default. Timothy Ash, an economist at BlueBay, told Insider he put the . A Russian debt default would likely be a major worry for the government, who could be locked out of capital markets for years. But it's unlikely to have a huge impact on the global financial system, strategists said. Here's what to expect as Russia edged back towards default. The US Treasury was allowing Russia to holders of dollar bonds. But it abruptly changed course Monday, saying it wanted to raise the pressure on Moscow over its war in Ukraine. Russia now cannot use immobilized