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Sanctions over events in Ukraine have cut off Russia from the
global financial system and blocked the bulk of its gold and
foreign exchange reserves. The payment on the two Eurobonds, due
on Wednesday, is Moscow's first test in honouring its external
debt obligations since Western sanctions were imposed.
Citi's branch in London did not immediately respond to a request
for comment.
A European-based holder of the bonds told Reuters on Thursday
that some holders of Russia's sovereign dollar-denominated bonds
who were due to receive a coupon payment on Wednesday had still
not received the funds.
The finance ministry had planned to send the equivalent interest
payment amount in roubles if dollar payment does not reach
foreign bondholders, something credit rating agency Fitch said
would constitute a sovereign default, if not corrected within a
30-day grace period.
Russia has 15 international bonds with a face value of around
$40 billion outstanding, around half of them held by
international investors.
The coupon payments due on March 16 are the first of several,
with another $615 million due over the rest of the month. The
first principal payment is due on April 4 when a $2 billion bond
matures.
The bonds themselves have been issued with a mix of terms and
indentures. Bonds sold after Russia was sanctioned over its 2014
annexation of Crimea contain a provision for alternative
currency payments. For bonds listed after 2018, the rouble is
listed as an alternative currency option.
(Reporting by Reuters)
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