Russian Railways blocked from paying Western bondholders

Russian Railways blocked from paying Western bondholders

Russian Railways (RZD) said on Thursday it was unable to make coupon payments on its dollar-denominated Eurobonds on time due to technical problems with Western banks. The company was hit with UK sanctions last month, so any bond payments are considered frozen assets and blocked on the account of the agent bank.

RZD was supposed to redeem the issue of Eurobonds with a nominal volume of about $605 million on April 5 and pay interest on it. However, the issuer of Eurobonds, RZD Capital, was unable to obtain funds from Russian Railways to pay the holders of the debt securities. The received funds were blocked on the accounts of RZD Capital, which makes it impossible to transfer them to bondholders.

Russian Railways was hit with British sanctions on March 24. The company said it is taking all available actions to fulfill its obligations to the holders of securities. It had applied to the UK Financial Sanctions Enforcement Authority (OFSI) for a license to service its debt obligations. However, it could take several weeks to process the request, RZD says.

Earlier, Russian Railways failed to make coupon payments on Eurobonds denominated in rubles, Swiss francs, and British pounds on time. It has warned that payments on Eurobonds may be delayed or suspended indefinitely by the relevant payment agents or correspondent banks due to their internal compliance procedures.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

The Central Bank of Russia (CBR) is considering creating a compensation fund for local investors whose assets have been frozen by Western nations, Governor Elvira Nabiullina said on Thursday during
подробнее...

Price for electricity in two key EU markets saw enormous increases on Friday, forcing the bloc’s leaders to call an emergency meeting to discuss the power-supply crisis that keeps tightening its grip,
подробнее...

Russian energy major Gazprom's stock jumped 31% on Wednesday to 267.25 rubles per share (just over $4.43) on the Moscow Exchange, following the company’s announcement of bumper profits and dividend
подробнее...

South Korea has clinched a 3 trillion won ($2.25 billion) deal with Russian state nuclear corporation Rosatom to provide components and construct turbine buildings for Egypt’s first nuclear power
подробнее...

The Bulgarian government is considering holding talks with energy giant Gazprom on resuming Russian natural gas imports, Energy Minister Rosen Hristov told Nova TV on Friday.“There are still no active
подробнее...

Electricity prices in Germany are expected to jump to record highs next year, the Neue Osnabrucker Zeitung newspaper reported on Friday, citing the country’s local public utilities association
подробнее...

Natural gas spot prices in Europe continue to rise with September futures on the TTF hub in the Netherlands jumping to nearly $3,500 per thousand cubic meters on Friday, according to data on the
подробнее...

Hundreds of various types of unsanctioned Russian goods worth billions of dollars continue to flow into US ports, Associated Press reported on Thursday.The report highlighted that over 3,600 shipments
подробнее...

The EU is planning urgent steps to bring down surging power prices, European Commission President Ursula von der Leyen said on Monday, as quoted by Bloomberg.“The skyrocketing electricity prices are
подробнее...

Imports of Russian goods by Mexico saw a substantial annual increase of more than 20% during the first six months of the current year, according to the latest figures released by the Bank of Mexico.In
подробнее...

The Moldovan government has launched a special website which will help citizens find firewood to heat their homes, authorities announced this week.“The site provides information about the nearest
подробнее...

Russia plans to propose expanding the use of national currencies in trade settlements between the members of the Eurasian Intergovernmental Council (EAEU), news outlet RBC reported on Thursday, citing
подробнее...

The proposal by the EU to place a price cap on Russian natural gas imports is a foolish, non-market-oriented plan that has no future, Russian President Vladimir Putin said on Wednesday.“Faced with
подробнее...

Major European ports have signaled their readiness to facilitate the export of Russian fertilizers, UN Secretary-General Antonio Guterres said in an interview with RIA Novosti, published on
подробнее...

The engine of European economic development, Germany, is set for a contraction, Deutsche Bank CEO Christian Sewing warned this week, as cited by CNBC.According to the media outlet, Sewing said in a
подробнее...

The European Commission on Sunday proposed withholding $7.5 billion in funds allocated to Hungary, due to corruption concerns. The suspension is aimed at protecting the bloc’s budget, according to
подробнее...

One of Russia’s top banks, VTB has become the first lender in the country to launch money transfers to China in yuan, sidestepping the Western-controlled global financial messaging system SWIFT.“The
подробнее...

The euro area has already entered a “shallow” recession that will last through the end of the year, economists at UBS Group said on Thursday, in a report seen by Bloomberg. They attributed the
подробнее...