Kiev confirmed the intention to introduce a moratorium on the payment of Russian debt


Moscow. November 13. The government of Ukraine will impose a moratorium on debt payments on Russian Eurobonds for $3 billion, if Moscow will not agree to the proposed terms of restructuring, said Prime Minister of Ukraine Arseniy Yatsenyuk.

“The Ukrainian government has offered equal conditions to all creditors and all approved them. Better conditions will not receive. If Russia does not agree, the government will introduce a moratorium on debt repayment”, – he said to journalists on Friday after meeting with U.S. Treasury Secretary Jacob Lew.

He also noted that the government of Ukraine expects changes in lending policy of the IMF, which currently excludes the possibility of providing funding to a member state of the Fund in arrears to the lender.

“Ukraine expects to receive about $4 billion in financial assistance in 2015 from the IMF, USA, EU and other donors in the case of effective implementation of Ukraine’s programme of reforms,” said Yatsenyuk.

The Prime Minister expressed hope that the Parliament of the reforms and noted that further support of Ukraine is connected with the effectiveness of the implementation of the IMF program.

Russia and Ukraine argue about the nature of the debt by $3 billion, which arose in December 2013 – then, shortly before the change of power in Kiev, Russia at the expense of the national welfare Fund bought Ukrainian Eurobonds worth $3 billion Ukraine has proposed a restructuring of this issue in General terms with the holders of commercial debt, however, Russia insists that it is sovereign debt, and expects full repayment in December, otherwise promising judicial process.

This situation may affect the acquisition of the Kiev International monetary Fund on 4-year EFF program totaling more than $17 billion, the Current policy of the Fund excludes the possibility of providing further funding member country of the IMF, which is owed to the lender.

However, the IMF recently stated that in the near future may take the decision to change its policy, it will continue lending to those countries that are in arrears to the lender. Changing the rules will give the IMF the ability to provide Ukraine the next credit tranche, even in case of default on the debt to Russia.

Earlier on Friday it became known that President of Russia Vladimir Putin on the sidelines of G20 summit in Turkey will meet with the head of the IMF Christine Lagarde, but it is not known whether at their summit climb subject repayment by Kiev of the Russian debt.