Kiev sees Moscow’s willingness to negotiate on the debt of $3 billion

KYIV, 19 Jul — RIA Novosti. The Minister of Finance of Ukraine Alexander danyluk said that Russia is not ready to negotiate on the debt of 3 billion dollars, because Russia puts the condition of the Ukrainian side about the recognition of his sovereign.

On Tuesday, the head of the Ministry of Finance of the Russian Federation Anton Siluanov said that Russia would not discuss with Ukraine its debt by $ 3 billion, while Kiev will not recognize his sovereign and will not offer restructuring terms better than those specified by commercial lenders.

“We are now geared to defend our position in court. Regarding the statements of the Minister of Finance, in principle, this shows that the Russian side is not willing to negotiate, they put some additional conditions, well, that’s their right,” said danyluk in the air of the Ukrainian “channel 5” on Wednesday evening.

Commenting on the possibility of discussing this subject at a meeting in Berlin on Wednesday, the Minister rejected such a possibility, noting that this issue was discussed at the Finance ministries of the two countries. “We have an obligation in the framework of the program of the IMF to conduct appropriate consultations,” he added.

Russia in February this year filed a lawsuit in London’s High court for the recovery of Ukraine’s debt at $ 3 billion and unpaid interest on $ 75 million. Borrowed funds were provided through the purchase by Russia in 2013, the issue of sovereign Eurobonds of Ukraine. Until the end of last year, Kiev was regularly serviced the debt, but then defaulted on these bonds.

Kiev had expected that Moscow will agree to restructure the debt on the same terms as commercial lenders. But Russia has refused, insisting that it’s sovereign debt to a creditor, so the issue of restructuring should be dealt with separately. This case will set a precedent in international law — debt disputes between countries have not brought to the attention of the court.

In their objections against claims of the Russian Federation, lodged in London’s High court, Ukraine stated that the loan agreement of 3 billion dollars “is null and void and not enforceable” for a number of reasons. Including Kiev pointed to the alleged coercion, which was carried out by Russia to Ukraine throughout 2013 with a goal to prevent Ukraine’s signing the Association agreement with the EU.