Russia agrees to restructure Ukraine's debt — Putin

The president noted that Moscow offered "better conditions" than the International Monetary Fund was asking for.

Russia has proposed to Ukraine to pay in installments in 2016-2018 years, $1 bln per year, the Russian President Vladimir Putin said Monday.

"In my opinion we made an unexpected offer to our partners," he said. "We haven’t not just agreed to restructure the Ukrainian debt, we have offered better conditions than the International Monetary Fund was asking of us. We were asked to postpone the payment for the next year in the amount of 3 bln [US dollars - TASS]. I said that we were ready for a deeper restructuring. We are ready not to receive any money this year, $1 bln next year, another $1 bln in 20187 and 2018," Putin added.

Kiev ready to sue Russia over debt restructuring

Ukrainian Prime Minister Arseniy Yatsenyuk said in mid-October that Ukraine was ready to start litigation with Russia over Kiev’s $3 billion debt restructuring. According to Yatsenyuk, Kiev has proposed that Moscow should consider once again Ukraine’s terms of its debt restructuring and write-down earlier offered to the special creditors’ committee. In case of refusal, Kiev intends to start legal proceedings, he said.

The Ukrainian financial authorities have said on many occasions they consider Russia’s $3 billion loan a commercial debt and insist on its restructuring. Meanwhile, Russia insists the loan is a state debt and demands its full redemption.

Russia made a decision in late 2013 to invest up to $15 billion in Ukraine’s sovereign Eurobonds. Soon afterwards, Russia bought Ukraine’s first Eurobond tranche worth $3 billion with a two-year maturity and a coupon rate of 5% per annum and coupon payments every six months.

Russia subsequently decided against investing the other $12 billion in Ukraine’s bonds.

First published by TASS.

All rights reserved by Rossiyskaya Gazeta.

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