The Russian Severstal, owned by Alexei Mordashov, who fell under the sanctions of the EU and Britain, was unable to pay investors debts on the issue of Eurobonds due to the blocking of funds by the bank. It is reported by Bloomberg.

Thus, the company became the first Russian company that, since the imposition of sanctions against the Russian Federation for the war in Ukraine, allowed a technical default on its securities..

Although the company transferred the necessary payment of $12.6 million to Citigroup's correspondent bank ahead of time, the bank blocked them on its account.. The financial institution explained that the company must obtain permission to conduct a transaction in the US Treasury.

However, Severstal failed to obtain permission in time and release the funds for transfer to the paying agent bank, investors did not receive their payments on time.

In addition, the grace period for debt repayment has already expired.. Investors can wait a few days and then claim the full amount of the debt. The total debt of Severstal as of December 31, 2021 amounted to $1.8 billion.

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Earlier it was reported that the company is looking for an alternative to repay the debt on time..

In addition, more and more analysts expect Russia to default due to sanctions..