Putin lashes out at Ukraine’s new debt repayment law

MOSCOW, May 20 (Xinhua) — Russian President Vladimir Putin on Wednesday demanded the timely repayment of all debts owed to it by Ukraine while criticized latter’s move to impose moratorium on state debt repayment.

The Ukrainian parliament on Tuesday approved a law which gives the government the right to miss Kyiv’s payments to international private lenders as it has been negotiating terms for restructuring of foreign debt.

President Putin, while speaking at a government meeting, said the Ukraine’s adoption of the new law shows “a poor level of professional responsibility” and this is “a de facto announcement of a looming default.”

Russian Financial Minister Anton Siluanov also said earlier in the day that Russia would file a lawsuit against Ukraine to the international court if necessary.

Russia holds 3 billion U.S. dollars Ukrainian Eurobond whose full repayment is due by the end of the year. Moscow, whose relations with Kyiv have been deteriorated by a year-long conflict in eastern Ukraine, has declined to join the debt restructuring talks, according to reports.

Reports also say that Ukraine, with its economy adversely affected by factors such as recession and the conflict in the east, hopes to secure a new tranche of a 17.5 billion U.S. dollars bailout program with the International Monetary Fund to shore up its foreign currency reserves. It is also holding talks to restructure sovereign and state-guaranteed debt to fill in a 15 billion U.S. dollars funding gap, but the negotiations have not gone well as expected.

Related:

Ukraine mulls moratorium on state debt repayment

KYIV, May 19 (Xinhua) — The Ukrainian parliament on Tuesday has approved a bill to grant the government a right to impose a moratorium on state debt repayment if a “need associated with difficult economic situation” arises.

The law, which was supported by 256 lawmakers out of 331 present in the assembly, will take effect after being approved by the president and will be in force until July 1, 2016, the statement posted on the parliament’s website said.?? Full story

NATO chief, Russian FM discuss Ukraine situation

BRUSSELS, May 19 (Xinhua) — NATO Secretary General Jens Stoltenberg discussed the situation in Ukraine with Russian Foreign Minister Sergei Lavrov here on Tuesday.

According to a NATO statement, Stoltenberg expressed the very strong NATO position on “the annexation of Crimea”, also on the very serious situation in eastern Ukraine at the meeting.? Full story

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