Russia Warns Kiev Against Default on Debt Payment

© Sputnik / Alexandr Demyanchuk / Go to the mediabankA burning one hryvnia bill on a gas burner
A burning one hryvnia bill on a gas burner - Sputnik International
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Moscow insists that the Ukrainian sovereign debt to Russia must be paid in full and on time, the Russian Cabinet's press service said in a statement on Thursday.

MOSCOW (Sputnik) —  The statement comes shortly after Ukrainian Prime Minister Arseniy Yatsenyuk urged lawmakers to support a package of draft laws on restructuring of Ukraine's state debt and urged Moscow to write off part of the debt to Russia.

"Our position remains unchanged. Ukraine must repay its debt to Russia acquired in December 2013," the statement said.

According to the statement, Ukraine will be "much better off if it pays the debt to Russia now because the default on payment will be significantly more costly," as Kiev will have to cover court fees and penalties for payment delays.

Buildings are seen amid a layer of smoke in Kiev, Ukraine, September 3, 2015 - Sputnik International
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Russia holds $3-billion Ukrainian Eurobonds, due to mature by the end of 2015.

In August, Ukraine’s Finance Minister Natalie Jaresko said that Kiev had reached an agreement with its creditors to write off the country’s debt.

The agreement left open the status of other debt owed to international creditors, including Russia.

The executive board of the International Monetary Fund (IMF) remains undecided about the status of the Russian bonds, IMF Communications Department Director Gerry Rice said earlier on Thursday.

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