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July 19 (Reuters) – Russian diamond miner Alrosa (ALRS.MM) intends to make a coupon payment on two $500 million ruble Eurobonds, after the sanctioned company failed to was able to make payment in U.S. dollars, the company said in a statement Tuesday. statement.
Alrosa said it had “proven to be technically impossible” to service the debt “as a result of sanctions imposed” by the United States, European Union and Britain on the company.
Western sanctions against Russia’s financial infrastructure have prevented many listed Russian companies from servicing their foreign debt, pushing them into technical default despite having funds and the will to meet their obligations.
Alrosa said it intends to pay interest due in rubles to certain eligible bondholders under new Russian laws designed to help companies avoid defaults.
The payments, which relate to two $500 million Eurobonds maturing in 2024 and 2027, were originally due on April 9, 2022 and June 25, 2022.
Alrosa said it was “fully committed to its Eurobond payment obligations” and was “taking all measures and steps possible to protect” bondholders. He also called on foreign debtors to lobby Western authorities to issue special licenses that would allow them to receive bond payments through Western payment systems.
Reuters reporting; Editing by Kirsten Donovan
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