12:05 GMT24 January 2020
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    If Kiev fails to make its next debt payment to Moscow by June 22, Ukraine will enter a state of default, Russian Deputy Finance Minister Sergei Storchak said Thursday.

    MOSCOW (Sputnik) — Russia bought Ukrainian sovereign bonds worth $3 billion in late 2013. The deadline for the next coupon payment of $75 million is set for June 20.

    “June 20 is a Saturday, so the payment is likely to come on Monday, June 22. Failure to pay would mean default,” Storchak said in an interview with Russia-1 television.

    In light of budget constraints and absence of access to capital markets, Russia “has to insist that the debtor fully complies with its obligations,” he said, noting, however, that failing to make a timely payment is not in the interests of Ukraine as a sovereign debtor.

    “Therefore, I believe that the payment will be made.”

    According to Storchak, Ukrainian borrowers owe Russian banks a total of about $25-26 billion.

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    Tags:
    default, debt payment, Sergei Storchak, Russia, Ukraine
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