The railway carrier of the aggressor country failed to pay off dollar Eurobonds on time.

Russian Railways

This is written by the railway magazine Railway Supply with reference to interfax.ru.

Russian Railways noted that due to the UK sanctions, they have technical problems with payments on external debt.

Russian Railways is to redeem the Eurobond issue with a par value of approximately $605 million on April 5 and pay back the accumulated income on it.

The issuer of Eurobonds, RZD Capital, was unable to obtain funds from Russian Railways to pay the holders of these debt securities.

The railway carrier of the aggressor country fell under British sanctions on March 24.

The company said it had applied to the UK Financial Sanctions Enforcement Authority (OFSI) for a license to service its debt obligations, but noted that it could take several weeks to process the request.

Earlier, Russian Railways failed to make coupon payments on Eurobonds denominated in rubles, Swiss francs and British pounds on time.

In its statement, the company noted that payments from the company’s Eurobonds in different currencies may be delayed or suspended indefinitely by the relevant payment agents or correspondent banks due to their internal compliance procedures.

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