The London office of Citibank refused to make a payment to Severstal for $12.6 million on Eurobonds for $800 million with a maturity date in 2024, RBC reports citing the company’s information.

“Severstal” had to redeem this coupon on March 16. As part of new currency control measures in Russia, the company received permission from a special commission under the Ministry of Finance to make such a payment. But on February 28, the company’s majority owner, Alexei Mordashov, along with other Russian businessmen and politicians, found themselves under EU sanctions.

“Given the recent developments around the company, we have reason to believe that Citibank, acting as the principal payment agent and transfer agent and account bank in respect of the bonds, may refrain from making the payment initiated by the company in accordance with the terms of the loan and the bond documentation,” Severstal said in a statement.