Samara-based Volgaburmash that is Russia’s the major manufacturer of drill bits for the oil and gas industry, yesterday declared technical default of redemption of the debut bond issue for 600 million rubles.  The debut three years bond issue was placed on October 12, 2005, the lead manager was All-Russian Bank of Regional Development, where Volgaburmash is a shareholder. The issue provides for six coupon payments of 11-14 percent annual interest. The company’s statement says that the technical default was caused by “technical operations to transfer funds to a paying agent’s account”. According to a Volgaburmash spokesperson, Larisa Tarasova, the payment delay was due to the financial crisis. Head of financial market department of All-Russian Bank of Regional Development, Albert Popkov, said that Volgaburmash yesterday made coupon interest payment and just now – another payment of about 346 million rubles (577,64 rubles per bond). Negotiations are underway about the rest of the payment, he added.