Russian Finance Minister: failure to repay $3bln debt by Ukraine would mean default

Russian Finance Minister Anton Siluanov stated that Kyiv's failure to pay back its debt on $3 billion eurobonds would be treated as Ukraine's default on its obligations.

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Such statement the minister made at a meeting of Russian President Vladimir Putin with members of the government, a Russian-based UNIAN correspondent reported.

"Currently we are preparing a specific plan of action in case of Ukraine's default, and, in fact, in late December, if Ukraine does not pay, it will be treated as default, the default of one state in relation to another state, despite the implementation of the program with the International Monetary Fund," Siluanov said.

He noted that the mentioned document would be submitted for consideration of the Russian president.

At this, Siluanov added that he had held talks with the Ukrainian Minister of Finance in Peru.

"I want to say just a few words about the meeting with Ukrainian counterpart … I have outlined the position that the debt that Ukraine owes to Russia is an official one, and cannot be treated as a commercial debt, on which the Ukrainian leadership is now holding negotiations", he said.

Siluanov also noted that the loan was granted on preferential terms.

He also stated that the repayment of those funds is provided for in the budget of the Russian Federation for 2016.

Siluanov stressed that in case of a failure to repay debts by Ukraine, the Russian Federation would apply to the arbitration court.

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