The Ministry of Finance of the Russian Federation: proposals of Ukraine on restructuring the debt unacceptable

The Ministry of Finance of the Russian Federation: proposals of Ukraine on restructuring the debt unacceptable


MOSCOW, February 9. Russia’s Finance Ministry received a proposal for the restructuring of the Ukrainian debt by $3 billion from the Finance Ministry of Germany, said assistant Finance Minister Svetlana Nikitina.

“The Finance Ministry received a proposal for the restructuring of the Ukrainian debt from the Finance Ministry. This proposal was not seriously considered because the proposed conditions are worse than those received trade creditors of Ukraine. As we have repeatedly stated, we find such proposals unacceptable,” she said.

Nikitin stressed that “we sent the proposal cannot be considered as an attempt to start good-faith negotiations because it did not recognize the official status of the debt and are not offered the conditions appropriate to such a status of debt”.

About Ukrainian debt

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.

See also

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

The government of Ukraine on 18 December 2015, has placed a moratorium on the payment of the debt of the Russian Federation and the Prime Minister of Ukraine Arseniy Yatsenyuk motivated by the fact that Russia refused to sign the restructuring agreement together with private creditors. However, the day before, on 17 December, the IMF Executive Board has recognized the status of Ukraine’s debt to Russia of the sovereign. This means that the obligation to pay the debt incurred by the government-borrower. Thus, Ukraine chose to avoid default 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.

December 20, Ukraine has defaulted on Russia’s debt. The Finance Ministry in this regard has initiated judicial review proceedings.

Recent negotiations on the debt, the parties met on the sidelines of the session of the International monetary Fund (IMF) and the world Bank in Peru in October. Since then, contacts between the parties occurred through intermediaries, the Ministry of Finance, Germany.