U.S. stops Russian bond payments in bid to raise pressure on Moscow

A view shows a Russian rouble coin and a U.S. dollar banknote. [Reuters]

The United States stopped the Russian government on Monday from paying holders of its sovereign debt more than $600 million from reserves held at U.S. banks, in a move meant to ratchet up pressure on Moscow and eat into its holdings of dollars.

Under sanctions put in place after Russia invaded Ukraine on Feb. 24, foreign currency reserves held by the Russian central bank at U.S. financial institutions were frozen.