Russian Railways claimed on Tuesday its bonds aren’t in default as it paid its debt on time, but blamed intermediaries for holding up the funds.
The state-owned railway firm, targeted by sanctions after Russia’s invasion of Ukraine, sought to clarify its position after falling behind four bond payments due in the last month. A panel of credit-default swap experts ruled on Monday the company is default after missing bond payments on a Swiss franc bond in March.
Funds never reached the accounts of creditors “due to the actions of intermediary financial institutions that are beyond the control of Russian Railways,” the company said in the statement. “Meeting our payment obligations remains a priority.”