Fin min says Russia gives Kiev time to start bond debt talks

MOSCOW, Apr 25 (PRIME) -- Russia’s Finance Ministry has given the new Ukrainian government time to start negotiations on repayment of a U.S. $3 billion Eurobond debt, Minister Anton Siluanov said on April 22.

“We have given the new government of Ukraine a respite because of a correspondent petition by the defendant who was referring to a political instability, so that Kiev had time to soberly assess the situation, to revise the previously stated position and to begin good faith negotiations on debt payment with Russia,” Siluanov said.

Kiev’s 2-year Eurobonds were bought by Russia in 2013. The securities matured in December 2015. Ukraine believes the debt is commercial and is subject to a restructuring deal, reached in August 2015 with commercial creditors, which includes a 20% write-off and a delay of redemption till 2019–2027. Moscow rejected the conditions as it believes the debt is sovereign, and should be restructured on different conditions.

The International Monetary Fund (IMF) acknowledged the debt as sovereign. In February 2016, Russia filed a lawsuit over non-repayment of the Eurobond by Ukraine to the High Court of London.

End