Russia will appeal to International Court if Ukraine fails to pay off its debts: finance minister

Russia will appeal to the International Court if Ukraine’s President Petro Poroshenko signs the bill on the moratorium for foreign debt payments that will allow the Ukrainian government to halt the payments of the debt to Russia, Russia’s Finance Minister Anton Siluanov told reporters on May 20.  The moratorium may apply to the $3 billion Eurobond purchased by Russia at the end of 2013.

The minister said if Ukraine fails to pay $75 million in interest on the $3 billion Eurobond from Russia on June 20, it will be a reason to lodge a claim. Siluanov said the bill allowing the country to halt foreign debt payments will result in a default.  

EADaily reported earlier, on May 19, the Supreme Rada authorized the government of Ukraine to impose a moratorium on payment of foreign debts to private creditors. Prime Minister of Ukraine Arseniy Yatsenyuk said the bill applies to private creditors, not the state banks.

“We ask our foreign private creditors to listen to the Ukrainian government’s suggestion and restructure Ukraine’s debts that are held by private creditors, and do it under conditions proposed by the Ukrainian government,” Yatsenyuk said.

He said it is necessary to reduce the burden on the country by at least $15 billion within the coming four years.