Yatsenyuk: Ukraine will not repay the debt to the Russian Federation without the consent of its restructuring

BERLIN, October 26. /Corr. Vyacheslav Filippov/. Ukraine will not repay its state debts to Russia if Moscow does not agree to its restructuring. This was stated by Prime Minister Arseniy Yatsenyuk published on Monday an interview with German newspaper Handelsblatt.

“We will declare a moratorium on debt repayment and won’t service the loan,” he said. Yatsenyuk stressed that Ukraine “can’t treat Russia differently than other international lenders”.

“We offer Russia the same conditions. The deadline for reaching agreement on 29 October,” he said.

He also said that Kyiv given Moscow a loan “actually a” bribe “from Russia”, the former President of Ukraine Viktor Yanukovych, according to him, got to stop the signing of the Association agreement with the EU.

The Loan To Ukraine

In December 2013, the presidents of Russia and Ukraine Vladimir Putin and Victor Yanukovych have agreed that Moscow will give Kiev a loan of $15 billion through the placement of Ukrainian securities. Under this program, bonds for $3 billion were placed on the Irish stock exchange on 20 December 2013 and bought by Russia at the expense of the national welfare Fund.

After Kiev agreed with creditors to restructure its debts, with the exception of Russia, Finance Minister Anton Siluanov has repeatedly said that Moscow is ready to turn to international arbitration courts, as well as directly to the international monetary Fund (IMF) in December if Ukraine fails to pay its debt. The last coupon payment on the loan were made by Ukraine in June of this year. Now Russia expects full repayment of the loan in December of the current year.

Debt restructuring

However, October 15, Yatsenyuk said that Ukraine is ready to sue Russia over debt-restructuring. According to him, Kiev offers Moscow on October 29 to review the conditions of the Ukrainian party debt restructuring and partial forgiveness, which were previously proposed by the ad hoc Committee of creditors. In case of refusal, he said that Kiev intends to resolve this issue in the legal plane. Commenting on these statements, the President’s press Secretary Dmitry Peskov indicated that Russia’s position on the question of the Ukrainian debt has not changed, it is a state structure and its non-payment is a default of Ukraine.