Putin instructed the Finance Ministry to sue Ukraine for non-payment of debt

Putin instructed the Finance Ministry to sue Ukraine for non-payment of debt

MOSCOW, December 9. The President of Russia Vladimir Putin has instructed the Finance Ministry to sue Ukraine for non-payment of the debt on the bonds. “Apply to the court then,” said he to the Minister of Finance, Anton Siluanov, speaking at a meeting with members of the government.

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The Ministry of Finance of the Russian Federation: Moscow will sue in the event of non-payment of Ukraine debt December 20

“That’s strange. If they (Western partners) are so convinced of the solvency of the country (Ukraine) for the next year, in four years you can take part in to divide these risks, said the head of state. – Even clear”.

Siluanov reported to the President that European officials have unofficially said they will not agree to the restructuring of the Ukrainian debt under its guarantees. The official answers they gave. “Received a letter from the Minister of Finance (USA), where is clearly written that such guarantees cannot be provided,” – said Siluanov.

I have a feeling that will not return, because rogues. They refuse to return the money

Dmitry Medvedev
the Prime Minister of the Russian Federation

Russia’s Proposal

In mid-November, Russian President Vladimir Putin said that Moscow offered to the over payment on the debt of Kiev for years 2016-2018 $1 billion dollars a year.

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The President emphasized that Russia not only agreed to restructure the Ukrainian debt, and offered the best conditions, as requested by the IMF. Russia also asked about guarantees from either the US government or from the EU or from international financial institutions.

Later, Deputy Finance Minister Sergei Storchak said that the IMF and creditors of Ukraine must respond to the proposal of the Russian Federation until December 8, 2015. Last week, the Finance Ministry has received an official refusal from the U.S. government to provide guarantees for the obligations of Ukraine.

The National Debt Of Ukraine

In December 2013 Putin and Ukrainian President Viktor Yanukovych have agreed that Moscow will give Kiev a loan of $15 billion through the placement of Ukrainian securities. Under this 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.

The last coupon payment on these bonds were made by Ukraine in June 2015, the Full repayment was expected in December 2015.