Dan Hoffman, a Fox News contributor and former CIA director of Moscow, states that Putin could not live by becoming a functioning democracy in Ukraine.
After Citigroup freezes debt repayment, a major Russian steel company is on the verge of default.
Severstal, Europe’s third-largest steel producer, was unable to pay $ 12.6 million in bonds within the five-day grace period, despite its funding.
In a statement posted on the London Stock Exchange website, Severstal said Citigroup, which is acting as the correspondent bank of the loan issuer, blocked payments for a “regulatory investigation.” ..
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Citigroup did not immediately respond to FOX Business’s request for comment, but those familiar with the matter said the bank stopped paying for permission from the Office of Foreign Assets Control of the U.S. Treasury before sending cash. I told Bloomberg.Neither the company nor its controlling shareholders are licensed by the United States
The management office of the Cherepovets Steel Works operated by Severstal PJSC in Cherepovets, Russia, on Friday, December 3, 2021. (Andrey Rudakov / Bloomberg via Getty Images / Getty Images)
“This is an unusual situation for us,” CEO Alexander Shevelev told Bloomberg News. “We will continue to consult with our partners and do our best to ensure that bondholders receive funds in accordance with the terms of bond issuance. We hope that this fraud will be resolved soon and that the rights of bondholders will be respected. I am. “
However, Alexei Moldashov, Russia’s wealthiest person and Severstal’s largest shareholder, identifies him as the majority owner of what the 28-vote block calls him a “private bank” of high-ranking Russian officials. After that, it was approved by the European Union on February 28th. .. The EU also said that Moldashov’s media company, Sever Group, is pushing Moscow’s policy to destabilize Ukraine.
Russia may be avoiding historic defaults for now
“I have nothing to do with the emergence of current geopolitical tensions and do not understand why the EU has imposed sanctions on me,” Moldashov said in a statement after the sanctions were announced. He called the battle in Ukraine a “tragedy”.
Alexei Mordashov, Chairman of the Board of Directors of Severstal, will attend the St. Petersburg International Economic Forum (SPIEF) in Russia on June 7, 2019. (Reuters / Maxim Shemetov / Reuters photo)
Severstal did not preemptively apply for an OFAC permit because Modashov is not part of US sanctions, a person familiar with the matter told Bloomberg.
Due to the financial blow caused by the myriad sanctions imposed on Russia, credit rating agencies downgraded the Russian government’s long-term debt rating to “junk” status, and Fitch said international sanctions would “shock Russia’s credit fundamentals.” I gave it. ” He said “” additional sanctions could still be clear.
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Russia temporarily avoided historic defaults last week after paying a significant $ 117 million interest payment on $ 2 bonds. However, the Kremlin has new obstacles. Moscow may default to local currency-denominated bonds that were scheduled to be paid earlier this month but have not yet been received by foreign investors.
The Treasury states that current US sanctions do not prevent Russia from paying off debt.