Russian Railways defaulted on Eurobonds

The incident was reported by Bloomberg, indicating that Russian Railways was declared in default due to non-payment of its obligations on time. The agency reports that this was due to Eurobonds that were issued two years earlier.

Their value was fixed in Swiss francs, and in rubles amounted to about 22 billion rubles.

In this situation, the payment under the mechanism of credit default swaps will be launched. It is a kind of insurance in such cases. However, it is not yet clear how much money Western investors will be get.

The threat of falling into a situation similar to the situation of the Russian Railways has already been announced by Alrosa, a Russian company engaged in diamond mining. And this is probably not the last similar statement.

However, experts believe that it is beneficial for Western investment companies that Russian legal entities redeem their obligations under Eurobonds. Sanctions are aimed not only at existing Eurobonds, but also at the future ones.

This means that for Russian businesses the opportunity to receive foreign funds in this way may be closed for a long time. However, foreign investors still have an interest in receiving income from Eurobonds that have already been sold, Business.FM reports.