Russian Railways Rejects Default, Says It Paid Debt on Time
- Company blames financial intermediaries for holding up funds
- CDDC declared company in default after missing coupon payment
Russian Railways passenger trains.
Source: Bloomberg
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Russian Railways denied that it’s in default, saying it met all its debt obligations and that the money didn’t reach creditors because intermediaries blocked the payments.
The state-owned company, which faces sanctions after Russia’s invasion of Ukraine, has missed payments on four bonds since the war started, as they got stuck in the banking system for compliance reasons. A derivatives panel ruled on Monday that it’s in default because of a “failure to pay.’