UPDATE: Kiev sets moratorium on $3 bln debt to Moscow, ready for trial

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MOSCOW/KIEV, Dec 18 (PRIME) -- The Ukrainian government has introduced a moratorium on U.S. $3 billion Eurobond debt repayment to Russia and is ready for court litigations, Prime Minister Arseny Yatsenyuk said at a government meeting Friday.

“The Ukrainian government introduces a moratorium on repayment of the so-called Russian debt today…We are introducing a moratorium on payment of $3.075 billion Russian bonds,” Yatsenyuk said.

Kiev also sets a moratorium on repayment of a $507 million debt of satellite and rocket designer Yuzhnoye Design Office and state automobile road agency Ukravtodor to Russian banks, the prime minister said.

“Starting from today, the repayment of debts totaling $3.582 billion in favor of the Russian side is suspended until either acceptance of our restructuring proposals or a corresponding court decision. I emphasize once again that we are ready for court proceedings with the Russian side,” Yatsenyuk said.

The International Monetary Fund (IMF) recognized this debt as sovereign on Wednesday. Russian Finance Minister Anton Siluanov said that after the IMF ruling Moscow expects new restructuring proposals from Ukraine as opposed to older ones focused on commercial creditors.

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 private creditors.

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