The exemption allows US banks to receive and process Russian payments to creditors, effective at 4:01 a.m. GMT on May 25, AFP reported.
Last week, US Treasury Secretary quan quan Yellen signaled an end to the exemption for Russia. She noted that the exemption is being implemented for financial institutions to adapt, but only "for a limited period".
Russia has been largely cut off from the international financial system under Western sanctions, with Russia blocked from accessing foreign exchange sources at US banks to pay foreign creditors.
The latest US move, according to AFP, has blocked the final exit for Russia to settle the debt.
"Russia cannot borrow from global financial markets and is unlikely to access capital markets. If Russia cannot find a legal way to make these payments... then technically, Russia will go bankrupt," Yellen told the press last week.
The Russian government has made efforts to pay in domestic currency, but many bonds do not allow payment in rubles.
Russia still faces dozens of overdue debts this year. The next repayment date on May 27 is 100 million euros in interest on 2 bonds: One requirement is only paid in USD, euro, British Pound or Swiss francs; the remaining bond can be paid in Russian rubles.
According to Reuters and the Wall Street Journal on May 20, the Russian Finance Ministry transferred money abroad early to pay to avoid bankruptcy.
In June, Russia paid nearly 400 million USD in interest.
If the debt cannot be paid on time, after a grace period of 15 to 30 days from the payment date, the debt country may be declared bankrupt, causing the financial situation to worsen. Being declared bankrupt also allows creditors to take legal action to collect the debt.
Despite Western sanctions, Russia continues to collect large sums of cash from energy exports and requires EU countries to pay for gas in rubles.
The Russian Finance Ministry said that the country's foreign debt is up to 4.5 to 4.7 trillion rubles (about 60 billion USD) - equivalent to 20% of total public debt.
Russia missed the deadline for paying domestic rubles in 1998 amid a larger financial crisis, but the last time Russia failed to break out on foreign currency was in 1918.
