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Kremlin Considers Ukraine's Decision to Suspend Debt Payments Illegitimate

© Sputnik / Alexandr Demyanchuk / Go to the mediabankRussian and Ukrainian bills and coins
Russian and Ukrainian bills and coins - Sputnik International
The Verkhovna Rada’s decision to suspend foreign debt payments is illegitimate, adviser of the Russian President Sergey Glazyev said.

Adviser of the Russian President Sergey Glazyev considers the new Ukrainian law, which allows Ukraine to suspend payments of its restructured foreign debt, illegitimate.

The law was adopted by the Ukrainian Parliament on Tuesday and will be in force until July 1, 2016.

"This decision is absolutely illegitimate, as illegitimate as the Ukrainian government itself. We need to convince the world community that the Ukrainian regime in Kiev has no right to exist. This regime is oppressing the people of Ukraine," Glazyev said in an interview with the radio station “Govorit Moskva”.

By adopting the law, the Ukrainian Parliament has given the government the right to impose a moratorium on payments of the country’s foreign debts.

Maidan Square in Kiev - Sputnik International
Ukraine May Now Suspend Payment on Restructured Foreign Debt
Prime Minister Arseniy Yatsenyuk said that the suspension of payments can only relate to private loans. But Ukraine views its debt to Russia also as a private one, a position Moscow totally disagrees with.

In an accompanying note to the law, it is said that the measure is aimed at protecting the interests of the Ukrainian people. The money will be used for the needs of the population, and not "to return the loans that were taken by the […] Yanukovich regime.”

Whether the new government will manage to spend this money to improve the life of Ukrainians, however, remains questionable.

As for March, Kiev’s foreign debt rose by 8.3 percent, reaching 32.8 billion dollars. There are forecasts that Ukraine’s total debt will amount to 93 percent of GDP by the end of the year.

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