Washington/Bucha - The Russian government was stopped by Washington on Monday to settle one of the largest payments as Zelensky President Volodymyr Zelenskyy prepared to talk to the U.N. Security Council amid outrage over evidence Moscow’s soldiers deliberately killed civilians.
The U.S. government decided to cut off Moscow's access to the frozen funds, thus preventing the Russian government from paying holders of its sovereign debt more than $600 million from reserves held at American banks. The move built further pressure on Moscow and eat into its holdings of U.S. dollars.
Foreign currency reserves held by the Russian central bank at U.S. financial institutions were frozen under sanctions in place after the Ukraine invasion.
On Monday, the largest of the payments, including a $552.4 million principal payment on a maturing bond was due, according to a U.S. Treasury spokesperson.
JPMorgan Chase & Co, which had been processing payments as a correspondent bank so far, was stopped by the Treasury, a source familiar with the matter told Reuters.
Russia prepares for offensive in southeast
Russian forces on Tuesday were preparing for an offensive in Ukraine’s southeast, the Ukrainian military said.
Putin’s government is pouring soldiers into Ukraine’s east to gain control of the industrial heartland known as the Donbas. That follows a Russian withdrawal from towns around the capital, Kyiv, which led to the discovery of corpses, prompting accusations of war crimes and demands for tougher sanctions on Moscow.
Russian forces are focused on seizing the cities of Popasna and Rubizhne in the Donetsk and Luhansk regions and the Black Sea port of Mariupol, the General Staff said on its Facebook page. Donetsk and Luhansk are controlled by Russian-backed separatists and recognized by Moscow as independent states.
Zelensky to address UN
Zelenskyy, speaking from Ukraine, planned to address Security Council diplomats Tuesday amid demands for an investigation of possible war crimes.
Germany and France reacted by expelling dozens of Russian diplomats, suggesting they were spies. President Joe Biden said Putin should be tried for war crimes.
Before Zelensky speaks, the most powerful U.N. body is due to be briefed by Secretary-General Antonio Guterres; his political chief, Rosemary DiCarlo; and U.N. humanitarian chief Martin Griffiths, who are trying to arrange a cease-fire. Griffiths met with Russian officials in Moscow on Monday and is due to visit Ukraine.
After touring neighborhoods of Bucha and speaking to hungry survivors lining up for bread, Zelenskyy pledged in a video address that Ukraine would work with the European Union and the International Criminal Court to identify Russian fighters involved in any atrocities.
Ap/Reuters