Russia awaits repayment of $3 bln by Ukraine until year end

"Ukraine chose to default on its debt rather than negotiate on the basis of an offer made by Russian President during the meeting of G20 leaders in Antalya in November 2015," the Ministry said.

The due date for settling $3 billion and the coupon was Sunday, December 20, which means that the relevant payment to Russia should have been carried out on the next business day, December 21, as reported.

Read alsoTASS: Russia sorry Ukraine prefers default to talksThe Russian Finance Ministry noted formal default would occur on December 31 after expiration of the so-called "grace" period, during which Kyiv is still able to make a payment.

"Russia's Finance Ministry expects that Ukraine will fulfill its debt obligations in full by the mentioned date," Rosbalt reports referring to the ministry's statement.

The Finance Ministry also reminded that the International Monetary Fund had recognized Ukraine's debt to the Russian state.

"If Ukraine fails to make payments under the bonds in full within the grace period, the Russian Federation will seek to recover the funds owed, using appropriate legal mechanisms," the ministry warns.

As UNIAN reported earlier, on December 18, Ukraine announced a moratorium on any payments of the Russian debt, including payment of $3 billion borrowed under Viktor Yanukovych's presidency and which reaches maturity in December 2015. This moratorium also encompasses Ukraine`s sovereign-guaranteed loans for Ukravtodor and Yuzhnoye owed to the Russian banks.

Total debt subject to the moratorium exceeds $3.58 billion.

Ukrainian Prime Minister stressed that any payments under the above-mentioned debts to Russia would be stopped "until the acceptance [by Russia] of Ukraine's restructuring offer or the issuance of the relevant court decision."

As UNIAN reported earlier, on December 16, 2015 the IMF Executive Board decided that the claim arising from the $3 billion eurobond issued by Ukraine on December 24, 2013 and held by Russia's National Wealth Fund is an official claim.

The Ukrainian Finance Ministry issued a statement claiming that Ukraine was not able to repay a $3 billion debt owed to the Russian Federation in accordance with its initial terms without violating the financing targets established under the IMF Extended Fund Facility. At this, the ministry underlined that the terms of the new Ukrainian sovereign bonds issued on November 12, 2015 specifically provide that a payment default or other event of default under the December 2015 eurobonds would not constitute a cross-default under the new bonds.