Severstal Applies to Have Blocked $12.6 Million Interest Payment Released -- Update

By Michael Susin

Steelmaker Severstal PAO said Tuesday that it has applied to the U.S. Office of Foreign Assets Control for a license to authorize the release and processing of a $12.6 million payment that was blocked amid sanctions on Russian oligarchs.

On March 23, the company failed to make a payment on its debt, despite having funds available, after Citigroup Inc. froze interest payments to investors in the company's bonds. Severstal is majority owned by Alexey Mordashov, a Russian oligarch sanctioned by the European Union and the U.K.

The company said Tuesday that its request includes the release and transfer of funds that have previously been blocked by Citigroup, and the normal onward payment of those funds for the bondholders.

Shares at 1406 GMT were down 3.8% at 1,013.8 rubles.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

03-29-22 1026ET