Investors Fume at UK Treasury’s License Delays for Russian Firms
- Companies unable to pay non-Russian investors without licenses
- $28.9 billion worth of Russian company bonds are in default
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Frustrations are mounting among investors in Russian-linked firms subject to UK law, as delays at the agency responsible for handling sanctions leave their hopes for payment hanging in limbo.
Since Moscow’s invasion of Ukraine, these firms have required special licenses from the UK’s Office of Financial Sanctions Implementation (OFSI) -- a part of the UK Treasury -- in order to pay their non-Russian stakeholders. But as requests swamp the sanctions body, many Russian firms have yet to receive their licenses, which are required -- among other things -- to pay back bondholders.