Report: Russia can any Eurobond settlement offers with Kiev

MOSCOW, Dec 29 (PRIME) -- Russia is ready to consider any proposals for settlement of Ukraine’s U.S. $3 billion Eurobond debt, including exchange for other securities, Finance Minister Anton Siluanov told channel Rossiya 1 in an interview broadcast late Thursday.

Deputy Minister Sergei Storchak said earlier that London’s court of appeals will consider the case on Ukraine’s debt on January 26–28.

Siluanov said: “Most probably, maybe, the litigations will continue. If we find and agree on a proposal of early settlement of the debt or its exchange for other securities, we are ready to consider any proposals.”

Russia bought Ukraine’s $3 billion 2-year Eurobond in December 2013 and later rejected restructuring conditions offered by the country to its commercial creditors. Kiev insisted that the terms of the debt repayment to Russia should be the same as for private creditors. The International Monetary Fund (IMF) recognized the debt as sovereign.

In February 2016, Russia filed a lawsuit with the High Court of Justice in London demanding that Ukraine pay the main debt of $3 billion, as well as $75 million of the last coupon and the interest that has accrued since December 20, 2015, the maturity date of the securities.

In March 2017, the court sided with Russia and obliged Kiev to redeem the sum. In June, the court pointed out that each day of non-payment results in a penalty of $673,000 for Ukraine. The court also obliged Ukraine to redeem 2.8 million British pounds of Russia’s legal costs. Kiev appealed against the decision.

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