01:17Ukraine: Repayment of $3bn Eurobond to Russia 'suspended' - Yatsenyuk
The Ukrainian government has imposed a moratorium on the repayment of the $3 billion (€2.76 bln) debt owed to Russia, announced Ukrainian Prime Minister Arseniy Yatsenyuk during a cabinet meeting in Kiev, Friday.
"After Russia refused to accept our offer despite our attempts to reach a restructuring deal, the government is now imposing a moratorium on the repayment of the $3 billion debt to Russia," Yatsenyuk said.
"In addition, the Ukrainian government imposes a moratorium on the payment of $507 million that two Ukrainian companies Pivdennyi Bank and Ukravtodor have to pay to Russian banks," he added.
Discussing the potential for legal action, the Ukrainian prime minister stated that "the payment of these in total $3,507 billion are suspended until we make restructuring proposals or a relevant court decision is made. We are ready for court proceedings with Russia."
The announcement comes after the International Monetary Fund (IMF) ruled on Wednesday that Ukraine's debt should be considered as official and sovereign, meaning that any failure to repay the Eurobond by its Sunday deadline would result in Ukraine having to declare default. In November Russian President Vladimir Putin and Finance Minister Anton Siluanov proposed delaying the repayment, offering a three-year restructuring plan if the United States, the European Union and the IMF provided guarantees for the loan. The proposal was rejected.
01:17The Ukrainian government has imposed a moratorium on the repayment of the $3 billion (€2.76 bln) debt owed to Russia, announced Ukrainian Prime Minister Arseniy Yatsenyuk during a cabinet meeting in Kiev, Friday.
"After Russia refused to accept our offer despite our attempts to reach a restructuring deal, the government is now imposing a moratorium on the repayment of the $3 billion debt to Russia," Yatsenyuk said.
"In addition, the Ukrainian government imposes a moratorium on the payment of $507 million that two Ukrainian companies Pivdennyi Bank and Ukravtodor have to pay to Russian banks," he added.
Discussing the potential for legal action, the Ukrainian prime minister stated that "the payment of these in total $3,507 billion are suspended until we make restructuring proposals or a relevant court decision is made. We are ready for court proceedings with Russia."
The announcement comes after the International Monetary Fund (IMF) ruled on Wednesday that Ukraine's debt should be considered as official and sovereign, meaning that any failure to repay the Eurobond by its Sunday deadline would result in Ukraine having to declare default. In November Russian President Vladimir Putin and Finance Minister Anton Siluanov proposed delaying the repayment, offering a three-year restructuring plan if the United States, the European Union and the IMF provided guarantees for the loan. The proposal was rejected.