The articles are available to subscribers only. The Eligible Market Participant also submitted the following information based on the articles and the terms of the 2022 Russian sovereign bonds. This is not a decision or statement of the EMEA DC:
On May 11, 2022, bondholders of the 4.5% 2022 Russian sovereign bonds submitted a default notice via Euroclear demanding the payment of approximately $1.9 million in accrued interest payments in respect of the delayed principal repayment upon maturity of the bonds. The bonds matured on April 4, 2022 but the payment of principal and interest due at maturity was not made until May 2. The bond documents provide for interest to continue accruing on the principal until the principal is discharged at the 4.5% coupon on a 30/360 day count, resulting in approximately $1.9 million in additional interest being owed upon discharge of the bonds. Russia did not include accrued interest beyond April 4, 2022 in its payment, putting it in default under the bonds. Following the demand from bondholders, Russia has not paid the interest owed.