Ukrain will not pay Russia / Photo from UNIAN
Ukraine cannot pay its $3 billion debt to Russia, taken in 2013 by former pro-Russia president Viktor Yanukovych, because the Russian Federation refuses to participate in Ukraine's debt restructuring deal, Ukrainian Finance Minister Natalie Jaresko said in an interview with Ukrainian TV Channel 5.
The Ukrainian government called on Russia to participate in the restructuring deal, but the latter is reported to have refused.
"Now we are preparing for any other options," the finance minister said.
Jaresko also noted that Ukraine would not be able to make payments under this debt.
"First of all, according to the IMF program, we have well-defined parameters: how much funds can be allocated for different things, starting from budget deficit to debt issuance."
As UNIAN reported earlier, the Ukrainian Finance Ministry and the Russian Government did not reach an agreement on the terms of restructuring $3 billion in eurobonds maturing in December, 2015.
UNIAN memo. 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 $3.8 billion, a four-year deferral of principal debt repayment, as well as the establishment of a single 7.75% interest rate for the bonds.
Later, on October 14, a meeting was held in London, during which more than 75% of the holders of Ukraine's eurobonds to be restructured agreed to the general terms of the restructuring of Ukraine's debt.
Ukraine offered Russia to participate in restructuring of the repayment of a $3 billion issue of Ukrainian eurobonds that Russia bought in December 2013, maturing in December 2015. Should Ukraine and Russia fail to reach an agreement, they are ready to take the matter to the court.