Ukraine maintains position on $3 bln Eurobond owned by Russia

KIEV, Oct 19 (PRIME) -- Ukraine has not changed its position regarding the U.S. $3 billion Eurobond owed by Russia, Finance Minister Alexander Danilyuk said on Wednesday on his Facebook page.

“Yesterday, (Finance) Minister (Anton) Siluanov reiterated Russia’s firm position that it sees the so-called ‘Russian Eurobonds’ as sovereign bilateral debt…Anyway, Ukraine has clearly outlined its position regarding the so-called ‘Russian debt’ in this legal case. At the same time, Ukraine sticks to the complies with the good faith it had promised to the International Monetary Fund (IMF) on the issue,” he said.

Russian Deputy Finance Minister Sergei Storchak said on Monday that the ministry hopes for an out-of-court settlement of the suit, but on Tuesday Siluanov said that Moscow will not discuss the debt with Ukraine until Kiev recognizes it as sovereign and offers restructuring terms better than those accepted by commercial creditors.

Russia bought the 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 debt repayment to Russia should be the same as for private creditors. The IMF recognized the debt as sovereign.

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

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