The Finance Ministry has started the procedure for the trial with Ukraine because of nonpayment of debt

The Finance Ministry has started the procedure for the trial with Ukraine because of nonpayment of debt

MOSCOW, December 31. The Finance Ministry has initiated procedures to start a trial with Ukraine because of nonpayment of debt. This is stated in a press release of the Ministry.

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“The Russian Ministry of Finance appealed to the company The Law Debenture Corporation plc, in accordance with the issue documentation, the bonds serving as the principal creditor, and initiated the procedures required to immediately start a trial with Ukraine”.

The lawsuit will be filed in an English court in accordance with established procedures.

The reasons for the proceedings

Ukraine has not implemented 31 December payment of $3,075 billion to repay and service debt to the Russian Federation. The Finance Ministry also noted that currently Ukraine is in default on these bonds.

The willingness to engage in dialogue

Commence legal proceedings for non-payment of duty does not exclude a constructive dialogue with Ukraine on settling the debt.

“Russia intends to carefully examine any substantial offer from Ukraine, and also believes that the initiation of the trial does not exclude a constructive dialogue in order to reach an acceptable settlement of the debt”, – stated in the press release of the Ministry.

If in this period, our Ukrainian colleagues will change their position and will return to the discussion of the repayment of its debt, we will be ready to consider their proposals, being in litigation with the Ukrainian side

Anton Siluanov
The Minister of Finance of the Russian Federation

Assistance to Kiev from the IMF

The Ministry noted that the IMF Board of Directors can not put the question of continued assistance if Kyiv does not begin to negotiate in good faith on a debt of Russia.

“If Ukraine does not change its position and begin to negotiate in good faith, the Board of Directors of the IMF can not raise the question of the permissibility continue lending to Ukraine under the extended Fund facility, keeping in mind the inadequacy of the existing provisions of the principles of the new policy of rejection of the Fund facts whether the borrowing country’s debt arrears to official creditors,” – said in a statement the Ministry.

The Debt Of Ukraine

On 18 December, the Ukrainian government imposed a moratorium on the payment of the debt of the Russian Federation. Prime Minister of Ukraine Arseniy Yatsenyuk motivated by the fact that “Russia refused to sign the restructuring agreement” on a par with private creditors. Thus, Ukraine chose to avoid default on its debt obligations, rather than negotiate on the basis of a proposal made by the President of the Russian Federation during the meeting of leaders of the countries “Groups of twenty” in Antalya in November.

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The Ministry of Finance after 31 December will have to wait for Kiev on a loan of $3 billion

In December 2013, the presidents of Russia and Ukraine Vladimir Putin and Victor Yanukovych have agreed that Moscow will give Kiev a loan of $15 billion through the placement of Ukrainian securities. Within the 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.

17 December 2015, the IMF Executive Board has recognized the status of Ukraine’s debt before Russia’s sovereign – this means that the obligation to pay the debt incurred by the government-borrower.

20 December, Ukraine has delayed the payment of the next payment on the debt. If Kiev fails to pay the amount due within the 10-day grace period on 31 December Russia will go to international court to recover these funds by force.

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A dispute about $3 billion: debt Kiev before Moscow in questions and answers