Yellen confirms Russia debt-payment licence extension unlikely

18/5/2022 6:42:00 PM

Ukraine-Russia Crisis: Yellen confirms Russia debt-payment licence extension unlikely - Bloomberg

Ukraine-Russia Crisis: Yellen confirms Russia debt-payment licence extension unlikely - Bloomberg

(May 18): Treasury Secretary Janet Yellen confirmed that it’s unlikely that the US will extend an exemption that enabled Russia to make bond payments on its foreign-currency debt, with investors now having had time to adjust to Moscow’s being cut off from the global financial system.“When we first imposed sanctions on Russia, we created an exemption that would allow a period of time that would allow for an orderly transition to take place and for investors to be able to

A (May 18): Treasury Secretary Janet Yellen confirmed that it’s unlikely that the US will extend an exemption that enabled Russia to make bond payments on its foreign-currency debt, with investors now having had time to adjust to Moscow’s being cut off from the global financial system.Telegram channel for the latest updates.Telegram channel for the latest updates.Telegram channel for the latest updates.

“When we first imposed sanctions on Russia, we created an exemption that would allow a period of time that would allow for an orderly transition to take place and for investors to be able to sell securities,” Yellen said at a press conference on Wednesday.“The expectation was that it was time-limited.” Poland is the lone holdout in the EU’s implementation plan, having vetoed a compromise in April to launch the 137-country deal reached last October aimed at ending a competitive downward spiral in corporate tax rates.I think it’s reasonably likely that the licence will be allowed to expire.Buses left the steelworks late on Monday in a convoy escorted by Russian armoured vehicles.” No final decision has been made, but it’s unlikely the licence will be extended, Yellen said.Poland’s new finance minister, Magdalena Rzeczkowska, has sought a “legally binding” link between the global minimum tax and the other pillar of tax negotiations — a reallocation of some taxing rights for large, highly profitable multinationals to “market countries” where their services and products are sold.Bloomberg News reported on Tuesday that the Treasury Department’s Office of Foreign Assets Control is expected to let the exemption lapse at its May 25 expiration, citing people familiar with the matter.According to the same decree, Russia will also significantly reduce its environmental standards for cars, the Kommersant business daily said in its Monday edition, bringing them back to standards for vehicles produced in 1988.

Yellen’s remarks suggest she sees no major dangers in allowing a Russian default on its dollar bonds.com Inc and Apple Inc.There were some women aboard at least one of the buses in Olenivka, Reuters video showed.She told US lawmakers last week the Treasury was “actively” examining whether to extend the licence.“We want to make sure that we understand what the potential consequences and spillovers would be of allowing the licence to expire,” she said.That more complex plan requires changes to international tax treaties, and Rzeczkowska has expressed concerns that if it fails, the global minimum tax would put undue burdens on European businesses.Speaking Wednesday in Bonn, Germany, ahead of a gathering of finance chiefs from the Group of Seven advanced economies, Yellen said that the US and its allies and partners share the goal of reducing Russia’s revenues in the wake of its invasion of Ukraine.One rested against duffel bags stacked on the floor.Technical Default The end of the carve-out could be the final straw in Russia’s debt saga after almost three months of war in Ukraine.Extra revenue Yellen met Polish Prime Minister Mateusz Morawiecki as well as Rzeczkowska and central bank governor Adam Glapinski.— AFP You May Also Like.

It’s managed to make all its payments to creditors so far, weaving through the tangle of sanctions that closed off some avenues.“If Russia is unable to find a legal way to make these payments and they technically default on their debt, I don’t think that really represents a significant change in Russia’s situation,” Yellen said.1 billion) in annual revenue, which could help defray the high costs of hosting Ukrainian refugees fleeing the Russian invasion.TASS news agency said a Russian committee planned to question the soldiers, many of them members of the Azov Battalion, as part of an investigation into what Moscow calls “Ukrainian regime crimes”.“They’re already cut off from global capital markets and that would continue.” The Treasury secretary also said that, given the enormous destruction in Ukraine, it’s natural “that we all look to Russia to help pay at least a portion of the price that will be involved” in reconstruction.“They seem to have a pessimistic view that we want to work through,” she said.“That said, while we’re beginning to look at this, it would not be legal now in the United States for the government to seize” Russian assets, she said.Negotiators last convened in-person in late March, and there has been little communication between them in recent weeks.

“Other countries have legal issues around it as well.” Yellen “expressed her gratitude at the generosity Poland has shown in welcoming refugees” from Ukraine and discussed Europe’s energy situation and screening of investments into Poland to protect national security, the Treasury said.” Ukraine Rebuilding Yellen expressed confidence that the US Senate will approve a US$40 billion package of assistance for Ukraine, and she called on her G-7 partners to join Washington in boosting support for the war-torn nation.On Tuesday, she had indicated that an effort in the vein of the post-World War II Marshall Plan will be required, given the reconstruction needs.“Poland will continue to call for further tightening of EU sanctions, especially in the energy, finance, transport and services sectors.Prisoner swap? The complete capture of Mariupol is Russia’s biggest victory since it launched what it calls a “special military operation” on February 24.“Conversations are really just beginning among countries about how to finance longer-term reconstruction and whether or not those assets should play a role, and if so how,” Yellen also said of frozen Russian holdings.Subscribe to Mid-day email alert We deliver news to your inbox daily.” US uncertainty Yellen also needed to reassure Polish officials about growing uncertainties over US implementation of the global minimum tax, said Manal Corwin, head of KPMG’s Washington national tax practice and a former US Treasury official.

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