US Treasury says it could block Russian debt payments starting next week

New York (CNN Business) Treasury Secretary Janet Yellen on Wednesday signaled US officials will likely end a carve-out in Western sanctions that has allowed Russia to continue make payments on its debt.

Speaking at a press conference in Germany, Yellen said it is "reasonably likely" to expect the license will be allowed to expire on May 25.

"There has not been a final decision on that. But I think it's unlikely [the carve-out] would continue," Yellen said.

Although the United States and other Western governments have frozen about half of Russia's dollar reserves , the country has managed to avoid default. Russia has the money to pay its debts, but it has been unable to access its foreign reserves totaling about $315 billion.

Nevertheless, Russia has continued to pay its creditors without accessing those frozen assets. The country's finance ministry said in April that Russia made a payment on a $565 million eurobond that was due this year, as well as $84 million for a eurobond that was set to mature in 2024. Both were made in US dollars, the finance ministry claimed, as required by the bond's contract stipulations.