Moscow has filed a lawsuit against Ukraine at London's High Court over Kiev's 3-billion-U.S.-dollar debt, Russian Finance Minister Anton Siluanov said Wednesday.
The lawsuit was a last resort as Kiev was not ready to negotiate a mutually acceptable compromise, Siluanov said.
"The lawsuit was filed after repeated unsuccessful attempts to encourage Ukraine to enter into a constructive dialogue on debt restructuring and to recognize the loan as official," Siluanov was quoted by Tass news agency as saying.
He hoped the judicial proceedings would be "transparent and open" at the "independent, authoritative court," "without prejudice against the dispute between the two sovereign states."
Siluanov said that a legal investigation into such dispute in court is a historic precedent on its own account, noting "the fact that the debtor actions caused this is only regrettable."
Russia bought Ukraine's 3-billion-dollar debt in the form of Eurobonds in December 2013 to shore up its economy. Bilateral negotiations failed to make a deal before the debt repayment matured.
Ukraine asked Russia to follow other international creditors and take the same conditions of a debt restructuring plan reached last August, which envisages a 20-percent write-off from Kiev's 15-billion-dollar foreign debt and a 4-year extension of the loan repayment period.
Moscow rejected the proposal and suggested instead a debt-relief plan, under which Kiev could repay its arrears in three installments of 1 billion dollars each within the next three years.
[Xinhua -china.org.cn]
18/2/16
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Related:
The lawsuit was a last resort as Kiev was not ready to negotiate a mutually acceptable compromise, Siluanov said.
"The lawsuit was filed after repeated unsuccessful attempts to encourage Ukraine to enter into a constructive dialogue on debt restructuring and to recognize the loan as official," Siluanov was quoted by Tass news agency as saying.
He hoped the judicial proceedings would be "transparent and open" at the "independent, authoritative court," "without prejudice against the dispute between the two sovereign states."
Siluanov said that a legal investigation into such dispute in court is a historic precedent on its own account, noting "the fact that the debtor actions caused this is only regrettable."
Russia bought Ukraine's 3-billion-dollar debt in the form of Eurobonds in December 2013 to shore up its economy. Bilateral negotiations failed to make a deal before the debt repayment matured.
Ukraine asked Russia to follow other international creditors and take the same conditions of a debt restructuring plan reached last August, which envisages a 20-percent write-off from Kiev's 15-billion-dollar foreign debt and a 4-year extension of the loan repayment period.
Moscow rejected the proposal and suggested instead a debt-relief plan, under which Kiev could repay its arrears in three installments of 1 billion dollars each within the next three years.
[Xinhua -china.org.cn]
18/2/16
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Related:
- Ukrainian Prime Minister Arseniy Yatsenyuk says his country won't repay a $3 billion debt Eurobond owed to Russia by this weekend...
Russia may declare Ukraine’s default if Kiev fails to pay off debt — (minister)
IMF review of rules for Ukraine’s benefit may set serious precedent for international law
Ukraine ready to sue Russia over refusal to restructure debt — (Ukrainian PM)
- Ukraine on Thursday gave Russia two weeks to accept to write off part of its loans to the country, as other international creditors have agreed to do, opening a new front in the show-down between the countries...
Russia, Ukraine Fail to Agree on Debt Restructuring
U.S. Treasury Department welcomes agreement on Ukraine debt restructuring (no mention of Ukraine’s debt to Russia)
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