Russia Ready To Sue Ukraine Over $3 Billion Debt

Russia Ready to Sue Ukraine Over $3 Billion Debt (Russia Insider, April 15, 2015):

In late 2013, Russia bought $3 billion worth of Ukraine’s non-tradable Eurobonds with a coupon of 5 percent and maturity in December 2015. Russia has notified Ukraine that it expects it to honor its obligations

MOSCOW, April 15 (RAPSI) – Russia will turn to courts should Ukraine fail to repay its $3 billion debt on time, RIA Novosti reported, citing Finance Minister Anton Siluanov.

Ukraine claims that the money would be allocated from the state budget to repay the debt on time, according to Siluanov.

 If this statement is disavowed, we will act in accordance with the agreements on the investment of Russia’s National Wealth Fund in Ukrainian bonds, under which we can sue Ukraine for failure to honor these agreements in accordance with British law,” the agency quoted Siluanov as saying.Ukraine is negotiating the restructuring of its $15 billion debt. On April 4, its government approved a list of Eurobonds to be restructured, which includes all Ukrainian public sector company foreign debt borrowed before February 28, 2014.

In late 2013, Russia bought $3 billion worth of Ukraine’s non-tradable Eurobonds with a coupon of 5 percent and maturity in December 2015. Russia has notified Ukraine that it expects it to honor its obligations.

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