Ukraine's Finance Ministry says it takes note of the apparent decision by Russia to initiate legal action against Ukraine over the $3 billion bond / Photo from shutterstock.com
Ukraine is ready for legal proceedings around Russia-held $3 billion eurobonds and will defend itself against any claim that may be brought against it, according to an official statement available on the Ukrainian Finance Ministry's website.
"Ukraine is ready to defend itself against any claim that may be brought against it, and is confident in all the circumstances of doing so successfully," the statement reads.
At the same time Ukraine is also ready to negotiate the restructuring of the debt owed to Russia.
"Despite any legal action, and without prejudice to its position on the underlying debt obligations themselves, Ukraine remains ready to negotiate with Russia in good faith a consensual restructuring of the December 2015 eurobonds which will allow it to remain in compliance with the financing targets agreed with the IMF [International Monetary Fund] under the Extended Fund Facility, while meeting its contractual commitments to other bondholders," the Finance Ministry said.
The ministry stressed that the Ukrainian government in November 2015 successfully completed a debt operation negotiated in good faith with a representative committee of bondholders. However, Ukraine regrets that the holders of the December 2015 eurobonds rejected participation in the debt exchange which was accepted by all of Ukraine's other bondholders.
On December 18, the Cabinet of Ministers of Ukraine announced a moratorium on the payment of this bond, also to allow Ukraine to determine any further rights and remedies available to it in connection with the same. The bond was issued by the Ukrainian government during Viktor Yanukovych's presidency in 2013 and its maturity expired in December 2015. It was included in the overall debt swap offer, however, Russia refused to restructure it.
In December 2015, the IMF, which is Ukraine's key lender, recognized the bond as Ukraine's official debt.
As UNIAN reported earlier, Russia's Finance Ministry announced on January 4, 2016, that a claim was being prepared for lodging with a U.K.-based court against Ukraine for the failure to repay over $3 billion on the bond.
The Ukrainian Finance Ministry said it took note of the apparent decision by the Russian Federation to initiate legal action against Ukraine over the $3 billion December 2015 eurobond.