UPDATE: Russia still plans to sue Kiev if Eurobond not repaid
(Adds finance minister’s comment in paragraphs 4–6)
MOSCOW, Dec 16 (PRIME) -- Russia’s position on Ukraine’s U.S. $3 billion Eurobond has not changed, it sees Kiev’s non-payment as default and will go to court if the Eurobond is not redeemed on time, presidential spokesman Dmitry Peskov told reporters Wednesday.
“There are no changes in the Russian side’s position in this case. The position remains the same – this debt is sovereign debt that has to be repaid. Non-payment means a default situation and means court proceedings,” he said.
He also said he is unaware if finance ministries of the two countries are negotiating a solution of the problem.
Russian Finance Minister Anton Siluanov said Moscow expects the International Monetary Fund to confirm the sovereign status of the debt later on Wednesday, after which Ukraine will have to revise the list of commercial creditors and exclude Russia from it. “We cannot and will not hold any talks with Ukraine assuming a status of a commercial creditor,” he said.
A recent fund reform, which allowed it to continue aid programs to Ukraine even if it defaults, kept the regulation that a sovereign creditor should have better restructuring terms than a commercial creditor, he said.
Russia is ready for an out-of-court agreement on the debt, but taking into account maturity on December 20, there is no time left for talks. “We are open for cooperation, but it is technically impossible,” he said.
Russia bought $3 billion worth of Ukraine’s 2-year Eurobonds in 2013. Moscow expected Kiev to redeem the bonds in December 2015 and did not accept restructuring conditions proposed by Ukraine to its commercial creditors.
President Vladimir Putin said in November that Russia is ready to receive no money in December and to get annual $1 billion tranches in 2016–2018 on condition that the U.S. or the E.U. government or one of the international financial institutions provides guarantees for the debt repayment. Ukraine did not agree with the offer.
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