Russia pushed closer to brink of default after U.S. payment license expires

FILE PHOTO: Russian and U.S. flags are pictured before talks between Russian Deputy Foreign Minister Sergei Ryabkov and U.S. Deputy Secretary of State Wendy Sherman at the United States Mission in Geneva, Switzerland January 10, 2022. REUTERS/Denis Balibouse

WASHINGTON/LONDON (Reuters) -The United States pushed Russia closer to the brink of a historic debt default on Wednesday by not extending its license to pay bondholders, as Washington ramps up pressure on the country following its invasion of Ukraine.

The U.S. Treasury Department late on Tuesday it would not extend the license, set to expire at 12:01 am ET (0401 GMT) on Wednesday, which allowed Russia to make interest and maturity payments on its sovereign debt to U.S. persons.