Russian steel maker Severstal informed that a test payment which the Company made on 16 March 2022 in respect of the interest due from it under the loan relating to USD 800 million 3.15% Loan Participation Notes due 2024 issued by Steel Capital SA (Luxembourg) has not reached the Issuer's account. As confirmed by bank, the payment was frozen by their correspondent bank Citibank New York due to regulatory investigations.Severstal said “Staying committed to fulfill our obligations under the Loan so as to enable the coupon payment by the Issuer under the Notes and to protect the rights of the Noteholders, we have been taking all efforts to effect the payment in line with the Notes documentation. As part of that, we have been in constant liaison with the Principal Paying Agent and the Trustee Citibank London Branch and are looking to initiate the application for licenses from the relevant competent authorities that may be required for an uninterrupted processing of PAO Severstal's payment instruction. To enhance the efficiency of those actions and promote a faster outcome to the benefit of Noteholders, we would also strongly encourage the Noteholders to contact the Trustee and request the Trustee to cooperate with the Company in its efforts to obtain the licenses from the relevant competent authorities required to enable the processing of payments due under the Loan and the Notes as well as to liaise with the relevant authorities to pursue a broader solution in order to minimize unintended effect of the sanctions restrictions on the Noteholders. We will keep the Noteholders regularly informed about the progress of our communications with the Trustee and the relevant regulatory filings and expect that this unprecedented situation can be resolved to the benefit of Noteholders as soon as is practically possible. We would also encourage the Noteholders to engage in the discussion that we have proposed to the Trustee, the Principal Paying Agent and the Issuer in order to coordinate further actions in the most efficient way.”Severstal is steel and mining company with assets located in Russia, Latvia and Poland. Severstal is listed on MOEX and the company's GDRs are traded on the LSE. Severstal reported EBITDA of USD 6 billion in 2021. Severstal's crude steel production in 2021 reached 11.6 million tonnes.