U.S. Treasury official: Bond default would add to Russia’s economic pain

A US Treasury official said on Monday that Russia’s default on its sovereign debt would put Russia’s economy and financial system in further trouble, making it difficult for Moscow to find new lending sources and raising future borrowing costs.

The official told Reuters that the Treasury believes that there is direct exposure in the US financial system to Russian sovereign bonds is limited, and that the main impact will be on the Russian economy, which is already under the weight of US sanctions.