Storchak: the situation with the Ukrainian debt to the Russian Federation develops while in trial version


MOSCOW, November 2 the Situation with Ukrainian debt by $3 billion to the Russian Federation develops while on trial version. This was reported to journalists the Deputy Minister of Finance Sergey Storchak.

“The scenario under which the parties agree outside the court process, it always exists in any civil law relationship. Another thing, on what terms and under what circumstances. At present, while the process develops according to the scenario of litigation. The process so far,” said the Deputy Minister.

Storchak explained that if the Ukrainian side will not be paid out in December, “run all the procedures associated with an action of Covenant inside the prospectus on the issue”.

Judicial procedures to run not so easy, he said. “These procedures are being prepared and will be launched,” – said Storchak.

Earlier, the Minister of Finance of the Russian Federation Anton Siluanov reported that the Ministry of Finance of the Russian Federation does not participate in the meetings of private creditors of Ukraine on restructuring the debt of Kiev, insisting that repayable in December of this year the debt of Ukraine to the Russian Federation may not be treated as debts to private creditors, debt has a different status is official. According to him, the Ukrainian authorities were repeatedly informed the Russian side that Russia expects repayment in full and on time. Siluanov pointed out that if Kiev fails to pay $3 billion, the Russian Federation will go to court.

Earlier, Prime Minister of Ukraine Arseniy Yatsenyuk in an interview with German newspaper “Handelsblatt” has declared that Ukraine will not repay its state debts to Russia if Moscow does not agree to its restructuring. In this case, Kiev will declare a moratorium on debt repayment, he said.

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 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 2015 Now Russia expects full repayment of the loan in December of the current year.

However, October 15, Yatsenyuk said that Ukraine is ready to sue Russia over debt-restructuring. According to him, Kiev offers Moscow until 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.

He also stressed that the Finance Ministry does not discuss the transfer of debt to Vnesheconombank (VEB).

“No, not discussed”, – he said, answering the question is discussed whether the transfer of the Ukrainian debt on the balance sheet of the Bank.

Earlier in the Ukrainian media appeared information with reference to sources in Vnesheconombank, VEB is in talks with the government of Russia about transfer of a debt of Ukraine on the Bank’s balance sheet and further transfer of these funds into the capital of its Ukrainian subsidiary Prominvestbank.

According to Ukrainian media, then the Bank will present a paper to the Ukrainian Finance Ministry to settle.

About the loan to Iran

Also Storchak said that the Finance Ministry had not received an official request from Iran for a loan of $5 billion, told reporters Deputy Finance Minister Sergei Storchak.

“More contacts by the Department, which I supervise, which deals with state export credit, with the Iranian side was not. Therefore, without knowledge of the position of a potential borrower is what I can tell – are not discussed. Discussion was held”, – he said.

At the end of October, the Minister of economic development of Russia Alexey Ulyukaev also said that he was not aware of the application of Iran for a loan from the Russian Federation.

However, energy Minister Alexander Novak announced during his visit to Tehran that the Ministry of economic development and the Ministry of Finance of the Russian Federation review the application of Iran for a loan from Russia for 5 billion dollars. Novak noted that the budget interstate loan is widely used as a financial instrument for stimulating and accelerating bilateral cooperation between the two countries. He recalled that a similar mechanism was used in relations with Cuba.

As previously reported with reference to the Deputy energy Minister Anatoly Yanovsky, Russian banks including VEB and VTB may become the organizers of credit for Iran.