Steel and mining giant Severstal PAO said Citigroup Inc. has frozen interest payments to investors in the company’s bonds, setting up what would likely be the first debt default by a major Russian issuer since Moscow invaded Ukraine.
Severstal said Wednesday that payment was frozen because of “regulatory investigations” and that it was committed to fulfilling its obligations under the loan. It said it had been in constant contact with Citigroup and would apply for any licenses needed for the payment to be made.