Russia says Ukraine defaulted on $3 billion Eurobond
“Thus, Ukraine is in a state of default now”, the ministry said in a statement.
An initial attempt to finalize the pact had failed in 2013, sparking protests in Kyiv that led to the ouster of Ukraine’s pro-Russian president, followed by Russia’s annexation of Ukraine’s Crimea, and a Russian-backed separatist uprising in eastern Ukraine. This self-imposed constraint can not be used by a sovereign debtor as an excuse for the failure to negotiate in good faith, still less as any legitimate basis for suggesting that Ukraine is unable to comply with its legal obligation to repay the Russian Federation.
“A corresponding lawsuit will be filed in an English court in compliance with the established procedures”, the ministry said on its website.
Back in August 2014, Kyiv reached a restructuring deal with its private creditors, including major banks, which agreed to reduce their claims by 20 percent. It, however, added that Moscow was ready to consider any significant offer from Ukraine over the debt.
The Russian government instead offered to spread out the payment over three years, an offer Kyiv rejected.
The dispute has been hampering the International Monetary Fund’s $17.5-billion rescue plan for Ukraine, which restricts Kyiv’s ability to restructure billions of dollars in debt.
Currently, Russia and Ukraine are trading in accordance with the free trade agreement between CIS countries.
To coincide with the January 1st launch of the deal, Russian Federation re-imposed import taxes on a wide range of Ukrainian goods, and banned outright the import of many food products from its neighbour.
Ukrainian Prime Minister Arseniy Yatsenyuk has put the cost of Moscow’s measures to his country at some $600 million.
Since then, Russia’s relations with the West and Ukraine have been strained.
The survey consisted of two questions: “Do you or do you not support signing a commercial contract with Ukraine for delivery of electricity to Crimea and Sevastopol, if it says that Crimea and Sevastopol is part of Ukraine?”
Ukraine hopes that the European Union would grant the country a visa-free regime this year, Ukrainian President Petro Poroshenko said during his New Year address to the nation.
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