Evraz declines to make April bond payment

Steelmaker Evraz PLC, which is based in the United Kingdom but part of a Russian conglomerate, has announced it will not make a regular payment of interest on a bond that was due April 2.

The payment is due on a 5.25 percent eurobond 2024 instrument or note.

The steel producer says the Evraz Group has “sufficient liquidity” to make the payment. Rather, the company says, it is “currently prohibited from making payments in respect of the 2024 notes without a license from the Office of Financial Sanctions Implementation (OFSI)” of the U.K. treasury department (HM Treasury).

Shortly after the Russian invasion of Ukraine, governments in Europe and North America began placing restrictions on financial transactions between companies in Russia and those in their own nations.

In the ensuing 13 months, the Evraz PLC website has contained a series of announcements about how the banking and trade restrictions have affected its operations and finances.

Last September, Evraz said it would be unable to make a eurobond payment at that time, citing prohibitions in place at financial clearinghouses.

Last August, Evraz said it intended to sell its steelmaking and scrap recycling assets in Canada and the United States. In the subsequent seven months, Evraz has not issued an update on that process.