07:55 GMT07 May 2021
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    If Ukraine fails to fulfill its debt obligations by December 20, Moscow will sue Kiev.

    MOSCOW (Sputnik) — Russia will sue Ukraine if Kiev fails to fully fulfill debt obligations by December 20, the Russian Finance Ministry said in a statement Saturday.

    "This week we received an official refusal of the US government to provide a guarantee for Ukraine's obligations. In this regard, we have no choice but to file a lawsuit against Ukraine in case of the borrower's non-fulfillment of its obligations in full by December 20 of this year, which will mean a sovereign default in Ukraine," the ministry said.

    According to the statement, there is a risk that Ukraine may not receive another tranche from the International Monetary Fund (IMF), as Kiev has still not adopted budget for 2016 that would be consistent with the parameters of the IMF program.

    Moscow made an offer on restructuring Kiev's $3-billion debt under US, EU or other major global financial institution's guarantees despite the lack of official address from Ukraine to the Russian government, the ministry added. Conditions offered by Russia were even better than IMF's, the statement read.

    Ukraine’s debt amounts to $70 billion of which some $40 billion the country owes to international money lenders. Of that amount, Ukraine owes Russia $3 billion in Eurobonds. The debt was secured by the previous government of then-President Viktor Yanukovych in late 2013.

    In November, Russian President Vladimir Putin said Moscow was ready to allow Ukraine not to pay back the $3 billion by the year-end deadline, but to pay $1 billion annually between 2016 and 2018.

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    Tags:
    debt, Russian Finance Ministry, Ukraine, Russia
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