Russian Railways was unable to make payments on Eurobonds in Swiss francs due to sanctions.

Russian Railways defaulted on bonds / photo from UNIAN

The Russian company “Russian Railways” defaulted on one issue of Eurobonds.

It is reported by Bloomberg with reference to the Credit Derivatives Committee.PauseUnmute

We are talking about eurobonds in Swiss francs with a payment date of March 14. Russian Railways tried and failed to make the payment due to the sanctions imposed on it.

Contracts that insure the company’s debt against default will be activated.

The decision was made as investors focused on whether the country’s sovereign bonds would default after coupon payments on two securities last week were made in rubles, although the bonds did not allow this. 

“Russian Railways” became the first Russian company to be recognized as having defaulted, The Bell notes .

As UNIAN reported earlier, the Russian authorities will go to court if Western countries default on Russia due to the lack of payments on Eurobonds in foreign currency.

(c)UNIAN 2022