IMF “Remembers” Debt of Ukraine to Russia

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Translated by Ollie Richardson for Fort Russ

15th July, 2016


The International Monetary Fund does not yet have new documents on the settlement of Ukraine’s debt to Russia, said the representative of the IMF Gerry Rice at a regular briefing.

However, according to him, the Council will take this into account when considering the question of allocation of the next tranche of aid to Kiev.

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“Regarding the debt, there are no new materials on this issue, but it will be one of aspects of discussion within the decision of the council,” he said.

The Parliament of Ukraine in December last year imposed a moratorium on the payment of debt to Russia before July 1st, 2016. The ban includes not only bonds for $3 billion, which were purchased by Moscow in 2013, but debts of two state-owned companies to Russian banks.

The International Monetary Fund earlier confirmed the official status of the debt of Ukraine to Russia, and therefore, according to the IMF rules, it cannot be restructured on the same terms as a debt to private creditors.

Kiev said that taking into account the position of the IMF, however, they will still not be able to repay the debt without violating the primary conditions of the loan. However, the Ministry of Finance of Ukraine expressed its readiness to negotiate with Russia on the restructuring of this debt.

Later, Deputy Finance Minister of Russia Sergei Storchak said that there were no contacts at the official level about the Ukrainian debt between countries.

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