The Ministry of Finance of the Russian Federation: Moscow will sue in the event of non-payment of Ukraine debt December 20

The Ministry of Finance of the Russian Federation: Moscow will sue in the event of non-payment of Ukraine debt December 20

MOSCOW, December 5. Russia intends to sue Ukraine if Kiev fails to pay debt by $3 billion dollars until December 20 this year. This is stated in the statement of the Ministry of Finance of the Russian Federation.

“Despite the absence of an official request of Ukraine to the government of the Russian Federation on the issue of sovereign debt restructuring $3 billion, Russia has made a proposal to the installment of repayment of the Ukrainian debt for 3 years (2016-2018 years) under guarantees of the USA, EU or first class international financial institution”, – noted in Department.

The Finance Ministry stressed that Russia offered Ukraine the “terms even better than requested the international monetary Fund.”

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“This week we received an official refusal from the U.S. government to provide guarantees for the obligations of Ukraine. In this regard, we have no choice but to sue Ukraine in the event of default by the borrower of the obligations in full on 20 December of the current year, which would mean a sovereign default of Ukraine”, – said in a statement.

“In addition, currently there are risks of non-receipt by Ukraine of the next tranche from the IMF in view of the fact that so far not adopted the state budget for 2016, which would match the parameters of the program Fund, due to the lack of an agreed draft tax reform also need structural measures”, – emphasized in the Ministry of Finance.

Debt of Ukraine to Russia

At the G20 summit in Turkey, Vladimir Putin announced that Moscow has offered to the over payment on the debt of Ukraine for the years 2016-2018 $1 billion a year. The head of state stressed that Russia does not agree to restructure the Ukrainian debt, and offered the best conditions, as requested by the IMF.

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© Mikhail Klimentyev/press service of the Russian President/TASS

Putin: Russia has made a surprise proposal on the debt of Ukraine

Putin stressed that the final decision on this proposal will have to be taken in the near future.

However, as announced on 1 December, Deputy Finance Minister Sergei Storchak, Ukraine has not yet responded officially to the proposal of the Russian Federation about debt restructuring of $3 billion. According to him, Russia expects that Ukraine will respond to this proposal until December 8th. “We proceed from the desire to reach an agreement before December 8, since December 8, the IMF will vote for the policy changes (which require permission to a lending Fund of the state with the official duty – approx. ed.)”, – said the Deputy Minister.

The National Debt Of Ukraine

In December 2013 Putin and Ukrainian President Viktor 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.

The last coupon payment on these bonds were made by Ukraine in June 2015, the Full repayment was expected in December 2015.