Report: Kiev not to alter $3bln bond restructuring terms for Russia

KIEV, Jul 27 (PRIME) -- Ukraine is unable to change restructuring conditions of its U.S. $3 billion Eurobond held by Russia, is unwilling to redeem it as it was a “political” loan and will defend its position in court, Finance Minister Alexander Danilyuk said in an interview to local television channel Espreso TV broadcast late on Tuesday.

Russia bought Kiev’s 2015 Eurobonds in 2013. Ukraine serviced it until the end of last year, when it defaulted on the debt. Ukraine believed the debt is commercial and is subject to a restructuring deal, which includes a 20% write-off and a delay of redemption till 2019–2027, reached in August 2015 with commercial creditors. Moscow rejected the conditions as it believes the debt is sovereign, and should be restructured on different conditions.

The International Monetary Fund 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.

“Our position is that it was a forced measure, that we were forced to take the money under political pressure, this is why our position is that we don’t have to repay the money,” Danilyuk said.

Ukraine cannot change restructuring terms for Russia. “Do I have any possibility to change the conditions? Definitely not…We just suggested Russians accept the same conditions. They refused,” he said.

He added that Kiev will defend its position in court.

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