Translated by Ollie Richardson for Fort Russ
9th December, 2015
Kiev is ready to begin legal proceedings with Moscow regarding the return of a loan of three billion dollars. This was stated on Wednesday, 9th December, by Ukrainian Prime Minister Arseniy Yatsenyuk, reports the TV channel “112 Ukraine”.
“If Russia sues Ukraine — we are ready to sue Russia, we are fully armed,” — said the head of government.
According to Yatsenyuk, Kiev’s position is unchanged — Moscow will not receive the debt restructuring other than what was already received by creditors.
Earlier on Wednesday, 9 December, President Vladimir Putin instructed the Finance Ministry to sue Ukraine in connection with failure to return a loan of three billion dollars. After hearing the report by the Finance Minister Anton Siluanov about the situation with the Ukrainian debt, the President said, “Well, okay, fine, apply to the court”.
According to Putin, Russia had asked the US, Europe or international financial institutions to share the risk on debt and was ready to support Ukraine. Siluanov reported to the President that unofficially, European and American officials refused to give Russia guarantees for restructuring the debt of Kiev.
Tuesday, December 8, the Board of Directors of the International monetary Fund (IMF) approved a reform that allows lending even during the default of a country. In particular, the new rules mean that the IMF will continue funding Ukraine, even if Kiev delays the payments for the debts to Moscow. The Russian Ministry of Finance called the decision to adopt reforms “hasty and biased”.
The agreement on granting Ukraine a loan of $ 15 billion was finalised in 2013. As a result, Russia bought Ukrainian Eurobonds for $ 3 billion. The full amount of the loan was not provided due to the change of power in Ukraine in February 2014. The Ukrainian government repeatedly demanded to restructure the loan in general terms.