Berlin urged Kiev to find a compromise in a dispute with Russia regarding the debt of $3 billion


Germany — the mediator in talks between Russia and Ukraine — asked Kiev to prepare a new proposal for restructuring debt to Russia in $3 billion after the Russian side rejected the former proposal of Kiev. It is reported Bloomberg citing a source familiar with the negotiations.

The German Ministry of Finance insists that Kiev has found a compromise in this dispute, said the source, who asked to remain anonymous.

To get a comment from the Ministry of Finance of Ukraine about the prospects for the mediation efforts of Germany to the Agency failed.

On Tuesday, the assistant Minister of Finance Svetlana Nikitina told journalists that the Finance Ministry did not consider seriously the proposals of Ukraine on restructuring the debt at $3 billion it has received through the intermediary — the Ministry of Finance of Germany. She’s not told exactly what the parameters of this proposal do not suit the Russian side, however, noted that the proposed conditions are worse than those who received trade creditors of Ukraine.

Ukraine was supposed to repay $3 billion in December 2015, but defaulted on it. Kiev proposed Moscow debt restructuring with commercial creditors terms, however, Russia this option to discuss refused, insisting on the sovereign nature of the debt.

January 1, the Finance Ministry announced that Ukraine had not paid $3 billion and the interest on $75 million on Eurobonds, and announced the beginning of judicial procedures. However, on 5 February, the Russian Finance Minister Anton Siluanov said that Russia has not filed a lawsuit against Ukraine. He said earlier that the lawsuit will be filed before the end of January.

The Minister of Finance of Ukraine Natalia Jaresko previously expressed hope that the issue of the debt to Russia will be solved in an extrajudicial manner.

Mediation is a sign that Ukraine is trying to resolve the issue of Russia’s debt out of court, says Bloomberg.