MP: Ukraine in court in debt to the Russian Federation will try to delay the time

MP: Ukraine in court in debt to the Russian Federation will try to delay the time


The Ukrainian authorities have imposed a moratorium on the payment of debt to Russia to $ 3 billion. Creating a judicial situation, Kiev will pull the time, says state Duma Deputy Oksana Dmitrieva.

MOSCOW, 18 Dec. Ukraine, declaring a moratorium on debt repayment to Russia, wants to drag Russia into the trial and thus delay the time, said the Deputy of the state Duma from fraction “Fair Russia” Oksana Dmitrieva.

On Friday, the Cabinet of Ministers of Ukraine introduced a moratorium on the payment of debt to Russia to $ 3 billion, maturing December 20. However, he clarified that the moratorium also applies to payment of 507 million dollars two Ukrainian companies to Russian banks — KB “southern” and “Ukravtodor”. Ukraine ready to sue Russia because of a debt in 3 billion dollars.

“They declared a moratorium, then they want to create a judicial situation. When there is a lawsuit, all actions are suspended. Want to drag (Russia – ed.) in judicial process, thereby provide a legal basis under the moratorium, to buy time,” said Dmitriev.

The Ukrainian government interpreted this duty to the Russian Federation as commercial, as it was formed as a result of the redemption of the bonds on the Irish stock exchange, and included bonds purchased by Russia in the list of securities the holders of which are private creditors, and on which the decision of restructuring. However, according to the IMF rules, the instrument of acquisition in this case does not matter: the status of the debt qualifies for the purchaser.

The IMF previously confirmed that the debt of Ukraine to Russia is official, not private, and therefore, according to the rules of the IMF cannot be renegotiated on the same terms as the debt to private creditors.

The prospects of return

In early December, the IMF Board of Directors approved a reform that allow the Fund to lend to debtors, even in case of default on sovereign debt (indebted to the lender).

Commenting on the decision, the Minister of Finance of the Russian Federation Anton Siluanov called it hasty, biased, taken exclusively at the expense of Russia and to legalize the possibility of Kiev to pay its debt. He also said that Russia will go to international court if Ukraine doesn’t pay debt in 3 billion dollars within 10 days after December 20.

Dmitriev explains that the unprecedented decision of the IMF, which provides loans Fund and not to pay off the debts with other countries, indirectly allows Ukraine and subsequently to other countries selectively to pay the debts.

“We have a right to demand settlement in court, but it is a long procedure. On this process, Ukraine may subsequently file an appeal if the decision is in our favor. In this case, we can seize the property in the territory of the Russian Federation or in other countries where there is the property of Ukraine,” says Dmitriev.

According to her, the political impact will certainly be, and a particular economic outcome is unlikely.

Constructive way

One of the options to resolve the issue of sovereign debt Dmitrieva considers the linkage of this issue with the commercial debts of Ukraine.

“I think a more constructive way from the point of view of Russian interests, despite any other problems that arise in the Ukraine with payment for gas from Russia and the settlement of commercial debt, to revive the question of sovereign debt,” — said the Deputy.

“I think the most important question to put is debt conversion and transfer for debt network of pipelines, property. And the property which may interest Russia is the infrastructure of pipeline transport,” she notes.

“If it were not for the decision from the IMF to obtain the loan, Ukraine would need to resolve the issue with us, then would be declared a total default… and so it turns out that the decision on the loan from the IMF, when they have sovereign debt to Russia – General message to all creditors that Russia, Ukraine can not pay, but the loans still need to provide,” said she.

Dmitriev notes that in this situation interesting is the reaction of other potential lenders on a moratorium, namely how it will affect their willingness to continue to interact not only with Ukraine, but also to commercial enterprises-residents of the country.

“Because of the position of the IMF, most likely, will not be for Ukraine to fully those consequences that come to a country that defaults on its obligations”, — concluded the Deputy.