Evraz bond payment blocked, sees link to Abramovich sanction (updated)

Evraz

21/03/2022 16:18

(Adds background)
    LONDON, March 21 (Reuters) - Evraz  EVRE.L , the Russian
steelmaker whose biggest shareholder is Roman Abramovich, said
on Monday a bond coupon payment of nearly $19 million had not
been received by its principal paying agent, adding it believed
the issue was linked to sanctions.
    The London-listed company said there were no reasons for it
to default, adding that the issuer had sufficient liquidity to
complete the coupon payments. 
    It said the paying agent for the coupon, Bank of New York
Mellon, had told Evraz it had not received the funds, which
remained "blocked for compliance" at Evraz's correspondent bank,
Societe Generale New York.
    SocGen in NY did not immediately respond to request for
comment.
    The coupon is on Evraz's dollar bond maturing in March 2023.
The issue last traded on Monday at 64 cents in the dollar
 RU153391572=   30050AAG8= 
    Britain imposed sanctions on Abramovich, the owner of
Chelsea soccer club, on March 10, freezing his assets and
preventing him from travelling to Britain.  urn:newsml:reuters.com:*:nL5N2VD2M8 
    Evraz reiterated its position that Abramovich, who owns a
28.64% stake, does not have effective control of the company,
and it believes that it is neither designated nor sanctioned.
    Evraz said it had sought clarity and confirmation from
Britain's Treasury and Foreign, Commonwealth and Development
Office about the matter.
    Britain's Index provider FTSE Russell said last week it
would eject Evraz, after many brokers refused to trade its
shares, which remain suspended.  urn:newsml:reuters.com:*:nL5N2VH1CT  
    

 (Reporting by Paul Sandle; additional reporting by Karin
Strohecker; Editing by Kate Holton and Sujata Rao)
 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters
Messaging: paul.sandle.thomsonreuters.com@reuters.net))