Russian Railways defaulted on one of the Eurobond issues

This is the first such decision of the European Committee on Credit Derivatives in relation to a Russian borrower after Western countries began to impose sanctionsagainst RUSSIA

Russian Railways (RZD) has been declared in default on one of its Eurobond issues, BLOOMBERG reported citing the Credit Derivatives Determinations Committee EMEA.

We are talking about Eurobonds for 250 million Swiss francs, which were issued in 2020. The date of payment for them came on March 14, the grace period of ten days expired. Russian Railways tried and failed to make the payment due to restrictions in place against them.

A Russian Railways spokesman declined to comment.

Russian Railways failed to pay off DOLLAR Eurobonds on time Business

This is the first decision on the default of a Russian company after Western countries began to impose sanctions against Russia. it is triggering a credit default swap (CDS) payment, and investors will have to see exactly how much they will pay, writes Bloomberg.

Since March 24, RZD has been under British sanctions, since the end of February - under the sanctions of CANADA and the European Union. Prior to this, the company failed to pay coupon payments on Eurobonds in British pounds and rubles, and it was also unable to repay dollar Eurobonds on time.

See also Western reaction to Russian sanctions 04:59

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