The Finance Ministry of Ukraine has called Germany a mediator in the negotiations with Russia on debt


Moscow. December 15. Germany mediates in Ukraine’s negotiations with Russia on debt restructuring, said the Minister of Finance of Ukraine Natalie Jaresko reporters on Tuesday.

“We are in contact with them through our German partners,” she said.

According to Jaresko, she met with representatives of the Russian side with mediation of the Minister of Finance of Germany, and the representative of Germany competes in the negotiations as a mediator.

Yaresko also noted that Ukraine has not received from the Russians of new proposals for debt restructuring.

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.

Russia also offered its version of restructuring of the Ukrainian debt with the installment repayment for 3 years under the guarantee of the USA, EU or first class international financial institution. However, the United States refused to provide guarantees.

Politics of IMF lending (Lending-into-Arrears Policy) previously excluded the opportunity to provide financing to a member state of the Fund in arrears to the lender. However, the IMF Board of Directors on December 8 decided to remove this restriction, giving the IMF the opportunity to continue lending to Ukraine under the current program of extended Fund facility of about $17 billion, even if it will allow a default on Eurobonds worth $3 billion.

Russia intends to initiate a meeting of the Board of Directors of the IMF for official confirmation of the status of Ukraine’s debt to Russia to $3 billion, said Finance Minister Anton Siluanov.

According to him, Russia will turn to court in case of non-fulfillment by Ukraine of obligations on repayment of debt to Russia on Eurobonds after the 10-day period from the official date of maturity December 20.