A major Russian steel company is on the verge of default after Citigroup froze its debt payment.
Citigroup did not immediately respond to a FOX Business request for comment, but a person familiar with the matter told Bloomberg that the bank halted the payment so that it could get permission from the U.S. Office of Foreign Assets Control before remitting the cash. Neither the firm nor its controlling shareholder are sanctioned by the U.S.
"This is an extraordinary situation for us," CEO Alexander Shevelev told Bloomberg News. "We continue consultations with partners and do our best to ensure that bondholders receive funds in accordance with the terms of the bond issue. I hope that this injustice will be resolved soon and the rights of bondholders will be respected."
Alexey Mordashov, chairman of the board of directors of Severstal, attends the St. Petersburg International Economic Forum in Russia on June 7, 2019.
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