Russia will agree to accept a guarantee on the debt of Ukraine from a major Bank

Moscow. November 18. The implementation of the restructuring of the debt of Ukraine to Russia in case of its approval may be accompanied by guarantee of the US or the EU, or a major Bank, said the Finance Minister Anton Siluanov.

“The restructuring of three years should be accompanied by guarantees for the implementation of the Ukrainian side this proposal by either the U.S. or the EU, or a major Bank in consultation with the Russian Federation,” he told reporters.

The Minister reminded that Russia made the proposal on the restructuring of Ukraine’s debt in the amount of $3 billion within 3 years in equal installments, by $1 billion starting in 2016. “In the current year obligations of Ukraine, on the proposal of the Russian Federation shall be only the amount of interest that the Ukrainian side must pay the Russian Federation in 2015, we’re talking about $75 million,” he said.

According to him, the question of payment of interest on the restructured debt Russia is ready to discuss.

“If our proposal will be supported until December 8, as we requested, we are ready to conduct more extensive consultations with the Ukrainian side, the IMF, other participants in the matter and to discuss the specific details of our proposals to be acceptable for the Russian side, and to colleagues from the IMF, as well as colleagues from Ukraine,” – said Siluanov.

He also stated that the need to change the rules of the IMF intolerance toward overdue debts to official creditors countries receiving Fund support, will disappear with the adoption of the Russian proposal. “Our proposal is not to create a precedent for changing the order of calculations of a state which receives support from the IMF, official creditors. If accepted, it will not be necessary to change the settlement rules in the IMF to official creditors,” – said Siluanov, adding that Russia’s proposal could be organized in the framework of the current IMF programs.

The Russian President Vladimir Putin said Monday that Russia agreed to restructure Ukraine’s debt at $3 billion over three years. It is expected that Kiev would pay Russia $1 billion a year over the next three years. The Russian side has asked the US government or the EU or the IMF to provide guarantees such repayment. The IMF and the Fund’s shareholders have to decide on the Russian proposal within three weeks.