Photo from UNIAN
Russia, which holds $3 billion in Ukrainian debt, is treated on a par with other creditors and will not be offered better debt restructuring terms, according to Ukrainian Prime Minister Arseniy Yatsenyuk.
"Russia demands the entire debt be repaid. However, I'd like to announce from this rostrum again: Russia will not get better conditions. Either you accept these terms, or there will be no other terms," Yatsenyuk said, addressing parliament on Thursday.
As UNIAN reported earlier, Ukraine and the ad hoc creditors' committee on August 27 agreed on restructuring part of sovereign debt to the tune of $18 billion. The restructuring involves a complete write-off of $4 billion, four-year deferral of principal debt repayment, as well as the establishment of a single 7.75% interest rate for the bonds.
Russia was offered the same restructuring opportunity regarding a $3 billion debt maturing in December 2015. However, Moscow rejected the offer.
Meanwhile, the U.S. Department of the Treasury called on all the creditors of Ukraine to complete negotiations on debt transactions as soon as possible.
UNIAN memo. On December 17, 2013, Russian President Vladimir Putin and the then Ukrainian President Viktor Yanukovych agreed that Russia would lend $15 billion in exchange for Ukrainian sovereigns. The first tranche of the loan in the amount of $3 billion was provided to Ukraine late in December 2013. Further tranches were not allocated. The $3 billion disbursement was included in private creditor debt, and thus it is subject to restructuring.