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Russia’s Biggest Firms Bypass Wall Street to Service Debt Sold Before Sanctions

  • So far $12.7 billion wiped out of corporate eurobond market
  • Market to contract further when Gazprom makes planned swaps

Russia’s biggest companies, even those that haven’t been directly targeted by recent sanctions, are bypassing Wall Street to repay their outstanding debt after the crackdown broadly disrupted the financial plumbing needed to service bonds.

Oil giant Lukoil PJSC — via its special purpose vehicle Lukoil Securities Limited — went through brokers in Cyprus to buy back all of its outstanding eurobonds, according to several people familiar with the matter who asked not to be identified discussing confidential information.