MOSCOW, December 9. Prime Minister Dmitry Medvedev believes that Ukraine will not bring Russia $3 billion of debt, “because the rogues”. He said this in an interview with Russian TV channels.
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“I have a feeling that will not return, because rogues. They refuse to return the money,” he said. He added that Russia does not intend to tolerate this situation.
“In respect of these three billion (debt). Of course, we won’t accept. We go to court, we will seek to default on its loans and default on all debt of Ukraine”, – said Medvedev.
The Prime Minister stressed that the debt of Ukraine is a sovereign. “If the two governments agree, it’s obviously a sovereign loan. Never in the history of the IMF is not questioned,” said he.
“It is surprising that international financial institutions started to say, when the two governments, then it is not sovereign loan, said the Prime Minister. That’s complete bullshit, it’s a brazen, cynical lie”.
“If the two governments agree – sovereign loan. It never questioned. It is surprising that international financial institutions started to say that it’s not quite a sovereign loan”, – he said in an interview with Russian TV channels. “That is, when the two governments – this is not a sovereign loan. It’s bullshit. It’s just a blatant cynical lie”, – said the Medvedev.
Medvedev believes that the decision by the IMF on the Ukrainian debt to Russia was political.
It is necessary in the near future to reform the decision making system of the IMF, said the Prime Minister.
Ukraine is obliged to pay the loan, it is the strong position of the government of the Russian Federation, said the Prime Minister. “They have to pay on this loan. It is our strict position,” he said.
“They don’t believe in the solvency of Ukraine”
The refusal of the United States and the West to guarantee the Ukrainian debt means they have faith in the solvency of the Ukrainian economy, said the Prime Minister.
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“If we don’t support the IMF, and by the way, our partners, because the President was asked about this, and I letters were signed in the European Union, we appealed to the Americans: to help ensure payment of the debt by Ukraine. We are ready to give instalments, whatever pays, reminded Medvedev. – What they told us? “No help will not, anything to ensure that will not, which means only one thing: They don’t believe in the solvency of Ukraine. They gave themselves no guarantee for Ukraine and is not allowed to do first-class banks, which could make for Ukraine, if they adopted the system of payment”.
Medvedev noted that the way the Western partners of Ukraine washed his hands and said, “Let the Ukraine itself comes up”. “A very bad situation and it is compounded by the fact that in addition to the three billion that Ukraine is on the threshold of accession to associated membership with the EU”, – said the Russian Prime Minister. He added that the Ukrainians chose this way and these decisions are partly separated by the Ukrainian people.
He noted that Ukraine is obliged to pay the loan, it is the strong position of the government of the Russian Federation. “They have to pay on this loan. It is our strict position,” he said.
Preferential trade regime with Ukraine
The Prime Minister warned that from 1 January 2016, the preferential trade regime with Ukraine will end, zero tariff will end and will grow from 3 to 9%.
“They need to understand that January 1 is over the period that we chose for adjustment of our economies, to connect the existing rules on free trade zone of the CIS with EU rules. We have specially arranged, that is, “triple”, the Europeans, Ukraine and Russia,” he said in an interview with Russian TV channels.
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According to Medvedev, at the moment, absolutely nothing has been done. “In the course of this year we were told that you need to meet, talk, need to combine positions, to talk about the wording, he said. – Specific issues not deal with: no issues for disease control, no customs duties and no harmonisation of law or the harmonization of technical regulation. Nothing.”
“But you have to understand us: if they chose another free trade area, other free zone, they must understand that the benefits on free trade zone with Russia – a zero rate will end for obvious reasons,” he said, noting that it is not connected with politics.
He explained that it is unknown what products will go through the Russian-Ukrainian border. “It can be European goods, and can be from third countries, and all of them at no cost through Ukraine will rush to Russia, – Medvedev noticed. We market simply “drown”. So we said to them: “We all complete, if we do not agree, we directly conclude on 1 January”.
According to Mr Putin, then Ukraine will receive the status of “most favoured nation” – a nation with which the trade is conducted on the principles of most favored nation. “Everything is good here, except for one thing – there is no zero tariff, he said. – The tariff will grow on different product categories from 3 to 9%, averaging 6%. This is a serious story and they should understand this”.
Medvedev said that until the end of December Russia will try to agree with Ukraine on the trade regime.
“The chances that we will agree, in my opinion, no,’ he said. But we stubbornly, until the end of December we will try to arrange to walk this path to the end and to demonstrate that if we agree to something, we all do.”
If the agreement doesn’t appear, Russia will impose new trade regime and sanctions against food products from Ukraine. Medvedev stressed that Russia did not do that, to help Ukraine to help in this situation is to cope with the economic problems and not to aggravate them.