UPDATE 2: Ukraine ready for talks after IMF says debt to Russia sovereign

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WASHINGTON/MOSCOW/BEIJING/KIEV, Dec 17 (PRIME) -- Ukraine takes into consideration the International Monetary Fund (IMF) position that its U.S. $3 billion Eurobond owed by Russia is sovereign debt and is ready to start restructuring talks, the Finance Ministry said in a statement Thursday.

“Ukraine agrees to conduct fair negotiations in order to reach a mutually acceptable agreement regarding restructuring of the bonds with maturity scheduled for December 2015,” the ministry said.

Russia bought the 2-year Eurobonds in December 2013 and rejected restructuring conditions proposed by Ukraine to its commercial creditors. Kiev insisted that the terms of debt repayment to Russia will be the same as for commercial creditors.

“The board of directors of the IMF has recognized Ukraine’s debt to Russia as official, not commercial debt,” an IMF official said.

Russian Finance Minister Anton Siluanov said that now with the IMF’s ruling, Moscow expects restructuring proposals from Ukraine.

“We are waiting for proposals from Ukraine, bearing in mind the new IMF decision, we are ready to consider them,” Siluanov said.

Russian Deputy Finance Minister Sergei Storchak said that the ministry does not rule out that Kiev may choose to declare a debt repayment moratorium later this week.

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